Bank Muscat on Monday announced its preliminary results for the three months period ended March 31, 2019.
The bank’s net interest income from conventional banking and income from Islamic financing rose 9.6 per cent to RO78.76mn for the first quarter of this year compared to RO71.84mn for the same period in 2018.
Non-interest income for the first quarter came at RO37.56mn as compared to RO35.36mn in the same period of 2018, an increase of 6.2 per cent.
Bank Muscat’s net loans and advances (including Islamic financing receivables) grew 7.9 per cent to RO9.158bn as of March 31, 2019 from RO8.485bn a year ago. Customer deposits (including Islamic customer deposits) increased 5.4 per cent to RO8.042bn at the end of the first quarter of 2019 as against RO7.631bn a year ago.
In a research note, Gulf Baader Capital Markets (GBCM) said, the loan book addition of Bank Muscat remained strong during the first quarter and growth in loan book came above their estimates.
As per GBCM’s estimates, Bank Muscat’s conventional loan book stood at RO7.995bn at the end of first quarter, an year-on-year increase of 7.1 per cent while Islamic book grew 14.2 per cent on year-on-year basis.
‘As per our estimates, the bank has reported an increase in yield especially in the new loan book additions. The largest bank in Oman also maintains a low cost deposit base, which would have benefited it. Overall, we remain mixed on the reported quarterly results of the bank’, it said.
GBCM said, ‘We do see positives in the results with an increase in credit demand (probably driven by corporate) and an increase in net interest margins. On the other hand, the increase in cost of risk remains as a negative to the overall results’.
Bank Muscat’s operating expenses increased 1.7 per cent to RO48.58mn in the first quarter of 2019 as compared to RO47.77mn for the same period in 2018. Net impairment for credit and other losses in the first quarter of this year was RO13.46mn as against RO6.09mn for the same period in 2018.
The bank said its full first quarter financial results along with the complete set of unaudited financial statements will be released post approval of the board of directors at its meeting scheduled later during April.