Bank Muscat (BKMB) Q3 2025 earnings summary

Executive summary

• Net profit for the nine months ended September 2025 rose 12.2% year-over-year to RO 191.6m, driven by higher business volumes, growth in both conventional and Islamic banking, and active balance sheet management.

• Net interest income and income from Islamic financing increased 5.8% to RO 310.9m, while non-interest income grew 12.0% to RO 123.6m, reflecting higher business volumes and investment income.

• Operating profit reached RO 271.7m, up 8.8% year-over-year, with operating expenses rising 5.3% to RO 162.82m and net impairment losses on financial assets decreasing to RO 43.63m.

• The bank maintained leadership in digital transformation, asset management, and Islamic banking, with significant progress in digital services and financial inclusion.

• Maintained strong asset quality and capital position, with robust coverage of non-performing loans and high liquidity.

Financial highlights

• Total assets grew to RO 14.56b as of September 2025, with net loans and advances, including Islamic financing, up 4.2% to RO 10.7b.

• Customer deposits stood at RO 10.1b, with CASA deposits comprising 59.1% of the total and deposits nearly flat year-over-year.

• Cost/income ratio improved to 37.5% from 38.3% a year earlier.

• Return on average assets (ROAA) increased to 1.79%, and return on average equity (ROAE) to 13.31%.

• Basic EPS rose to RO 0.024 from RO 0.021 year-over-year.

Outlook and guidance

• Oman’s macroeconomic environment remains stable, with GDP growth projected at 3% for 2025 and continued fiscal consolidation.

• The bank is positioned to benefit from economic diversification, government reforms, and favorable demographics, with a focus on digital transformation and financial inclusion.

• Strategic initiatives include expanding digital banking services and launching new products tailored to specific customer segments.