Bank Muscat (BKMB) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended Sep 2024 rose 7.5% year-over-year to RO 170.8m, driven by growth in both conventional and Islamic banking segments.

• Net interest income and Islamic financing income increased 4.6% to RO 293.91m.

• Non-interest income grew 10.1% to RO 110.3m, reflecting improved business volumes.

• Customer deposits, including Islamic deposits, increased 6.6% to RO 10,110m; net loans and advances, including Islamic financing receivables, rose 4.1% to RO 10,268m.

• Operating profit reached RO 249.6m, up 6.3% year-over-year.

Financial highlights

• Operating income for the period was RO 404.25m, with a cost/income ratio of 38.3%.

• Operating expenses increased by 5.6% to RO 154.64m.

• Net impairment losses declined to RO 44.95m.

• Return on average assets at 1.64%; return on average equity at 12.53%.

• Basic EPS for the period was RO 0.021.

Outlook and guidance

• Oman’s GDP growth projected at 1.2% in 2024, rebounding to 3.1% in 2025.

• Fiscal and current account balances expected to remain in surplus over the medium term.

• Continued focus on economic diversification, digitalization, and financial market deepening.

• Significant investments in digital platforms and payment solutions.

• Ongoing expansion of branch and service network to meet growing demand.