Muscat – Bank Muscat, the flagship financial institution in the sultanate, has reported a 23.8 per cent year-on-year growth in its net profit for the nine months period ended September 30, 2021, mainly due to lower impairment charges this year.

The bank posted a net profit of RO140.16mn for the first nine months of 2021 compared to RO113.21mn reported during the same period in 2020, according to preliminary unaudited results released on Thursday.

Bank Muscat’s net interest income from conventional banking and net income from Islamic financing increased 5.2 per cent to RO252.48mn for the nine months period ended September 30, 2021 compared to RO240.07mn for the same period in 2020.

Non-interest income grew by 9.4 per cent to RO105.85mn for the nine months period ended September 30, 2021 as compared to RO96.72mn for the same period in 2020.

Bank Muscat said its operating expenses for the nine months period this year came at RO144.33mn as compared to RO137.19mn for the same period in 2020, an increase of 5.2 per cent.

The bank’s net impairment for credit and other losses for the first nine months period of 2021 dropped at RO46.77mn as against RO64.82mn for the same period in 2020.

‘The decrease [in impairment charges] is mainly attributed to the precautionary and collective provisions created by the bank during the first half of 2020, due to the onset of the COVID-19 pandemic and the historic decline seen in global crude oil prices. The bank remains vigilant of the continuing stress in the macroeconomic and business conditions and its potential impacts,’ Bank Muscat said.

Net loans and advances [including Islamic financing receivables] increased by 2.9 per cent to RO9.156bn as of September 30, 2021 compared to RO8.895bn a year ago.

On the other hand, Bank Muscat’s customer deposits [including Islamic customer deposits] decreased by 1.1 per cent to RO8.698bn this year from RO8.795bn as of September 30, 2020.

Bank Muscat said its full financial results for the nine months ended September 30, 2021 along with the complete set of unaudited financial statements will be released following the approval of the board of directors at its meeting scheduled for late October.