Bank Muscat (BKMB) H2 2025 earnings summary

Executive summary

• Net profit reached OMR 255 million (or £255.5m) in 2025, up 13%–13.3% year-over-year, driven by higher business volumes, active balance sheet management, and diversification in non-hydrocarbon sectors.

• Operating income grew to £587.6m, a rise of 8.3%, with non-interest income up over 20%.

• Maintained strong market leadership in Oman with a 32.4% share of total assets and the largest branch network.

• The banking sector expanded, supported by strong regulatory oversight, prudent risk management, and robust capital frameworks.

• Cost-to-income ratio remained stable at 38%.

Financial highlights

• Net profit increased by 13%–13.3% to OMR 255 million (£255.5m).

• Net interest and Islamic financing income grew by 3.8%–4%, while non-interest income surged over 20%.

• Customer deposits increased by 6.7% to OMR 34 billion (£10.4bn); net loans and financing grew 4.9%–5% to OMR 35 billion (£10.7bn).

• Operating expenses rose 6.7%, in line with business growth.

• Provision coverage reached 174% of non-performing loans.

Outlook and guidance

• Oman’s economy projected to expand by 3.5% in 2026, with continued government focus on diversification and fiscal sustainability.

• Expectation of continued mid-single digit growth in loans, deposits, and profitability, aligned with economic growth aspirations.

• Margin compression anticipated due to global interest rate trends and competition, but non-funded income and international portfolio expected to support earnings.

• CASA growth and digital expansion remain strategic priorities.

• Bank positioned to benefit from economic reforms, infrastructure investments, and population growth.