Bank Muscat (BKMB) Q1 2025 earnings summary

Executive summary

• Net profit for Q1-2025 rose 8.0% year-over-year to RO 58.6m, driven by higher business volumes and active balance sheet management.

• Net interest income and income from Islamic financing increased 6.9% to RO 102.0m, while non-interest income grew 3.8% to RO 38.7m.

• Operating profit reached RO 85.6m, up 5.9% year-over-year, with operating expenses rising 6.2% to RO 55.0m.

• Net impairment losses decreased by 7.3% to RO 15.0m, with strong provision coverage at 1.7x NPLs.

• Net loans and financing grew 6.9% to RO 10.5b, and customer deposits increased 2.6% to RO 10.0b.

Financial highlights

• Operating income for Q1-2025 was RO 140.7m, up from RO 132.7m in Q1-2024.

• Total assets reached RO 14,364m as of 31 March 2025, up from RO 14,009m a year earlier.

• Earnings per share increased to RO 0.008 from RO 0.007 year-over-year.

• Net impairment losses on financial assets decreased to RO 15.04m from RO 16.22m year-over-year.

• Total equity stood at RO 2,381m, with net assets per share of RO 0.250.

Outlook and guidance

• Positioned to benefit from Oman's economic diversification, favorable demographics, and reform-oriented government policies.

• Oman’s macro environment remains stable with a budget surplus, improved sovereign ratings, and ongoing fiscal reforms.

• Continued focus on digital transformation, customer experience, and expanding digital banking services.

• Strategic initiatives include further integration of technology and expansion of digital platforms.