Bank Muscat (BKMB) Q1 2026 earnings summary

Executive summary

• Net profit for Q1 2026 rose 9.2% year-over-year to £63.95 million, driven by higher business volumes, net interest and non-interest income, and active balance sheet management.

• Net interest income and Islamic financing income increased 2.1% to £104.14 million; non-interest income grew 6.4% to £41.13 million.

• Operating profit reached £87.5 million, up 2.2% year-over-year, with operating expenses rising 5.0% to £57.78 million.

• Net impairment losses declined to £11.24 million, enhancing coverage of non-performing loans.

• Customer deposits grew 4.9% to £10.5 billion, with CASA deposits at 63% of total.

Financial highlights

• Total assets reached £15.4 billion as of March 2026, with gross loans at £11.9 billion and customer deposits at £10.5 billion.

• Earnings per share for Q1 2026 were £0.009, up from £0.008 in Q1 2025.

• Total comprehensive income for the period was £106.2 million, compared to £59.6 million in Q1 2025.

• Net assets per share increased to £0.274 from £0.250 year-over-year.

• Cost/income ratio stable at 39.8%; ROAA at 1.68% and ROAE at 12.76%.

Outlook and guidance

• Oman’s economy projected to expand 3.5% in 2026, with government reforms supporting diversification and fiscal sustainability.

• Sustained focus on digital transformation, customer-centric solutions, and operational efficiency.

• Continued investments in technology and expansion of premium service offerings.

• Ongoing support for national development goals through strategic financing and partnerships.

• Stable banking sector and prudent regulatory environment expected to support continued growth.