Muscat – Bank Muscat, the flagship financial institution in the sultanate, reported a 16.1 per cent year-on-year increase in its profit for the full year 2021, mainly due to higher operating income and lower impairment charges. The bank posted a net profit of RO189.63mn for the year ended December 31, 2021 compared to RO163.36mn reported during the same period in 2020.
Bank Muscat announced its full year preliminary unaudited financial results on Thursday in a press statement. It said the financial results are subject to external audit and approval of the board of directors, Central Bank of Oman and shareholders of the bank.
The bank’s net interest income from conventional banking and net income from Islamic financing grew by 4.2 per cent to RO335.54mn in 2021 compared to RO322.13mn a year ago.
Non-interest income increased by 4.1 per cent to RO139.95mn for the year ended December 31, 2021 as compared to RO134.41mn for the same period in 2020.
Bank Muscat’s operating expenses for the full year was RO191.46mn compared to RO179.85mn for the same period in 2020, an increase of 6.5 per cent.
Net impairment for credit and other losses for the year 2021 was RO60.22mn as against RO81.04mn for the same period in 2020.
‘The decrease 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 macro-economic and business conditions and its potential impacts,’ Bank Muscat said.
The bank’s net loans and advances including Islamic financing receivables increased by 2.3 per cent to RO9.187mn as against RO8.983mn as of December 31, 2020.
Bank Muscat’s customer deposits including Islamic Customer deposits increased by 3.7 per cent to RO8.775mn at the end of 2021 as against RO8.459mn as of December 31, 2020.
‘The full results for the year ended December 31, 2021 along with the complete set of unaudited financial statements will be released following the approval of the board of directors of the bank at its meeting scheduled later during January 2022,’ Bank Muscat said.