Bank Muscat has announced its preliminary unaudited results for the six months ended June 30, 2020. The bank posted a net profit of RO 69.56 million for the period compared to RO 93.65 million reported during the same period in 2019, a decrease of 25.7 per cent.
Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 160.53 million for the six months period ended June 30, 2020 compared to RO 159.02 million for the same period in 2019, an increase of 0.9 per cent.
Non-interest income was RO 64.69 million as compared to RO 75.05 million for the same period in 2019, a decrease of 13.8 per cent mainly due to subdued business conditions due to COVID-19 related lockdowns in Q2 2020 and waiver of certain fees due to regulatory measures.
Operating expenses for the six months period ended June 30, 2020 was RO 94.03 million as compared to RO 97.11 million for the same period in 2019, a decrease of 3.2 per cent. Net Impairment for credit and other losses for the six months period in 2020 was RO 48.19 million as against RO 24.99 million for the same period in 2019. The increase is mainly on account of precautionary and collective provisions being made on a forward looking basis given the emerging stress in the economic and business conditions as a result of the impact of COVID-19 and the continued pressure on oil prices.
Net Loans and advances including Islamic financing receivables decreased by 1.2 per cent to RO 8,965 million as against RO 9,078 million as at June 30, 2019. The reduction in the loan book is mainly attributable to prepayment of certain large corporate exposures in the last quarter of 2019. Customer deposits including Islamic Customer deposits increased by 7.3 per cent to RO 8,562 million as against RO 7,978 million as at June 30, 2019.
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