Bank Muscat (BKMB) H1 2026 earnings summary

Executive summary

• Net profit for H1 2026 rose 9.3% year-over-year to OMR 137.5 million, reflecting resilient business growth, disciplined credit management, and strategic initiatives.

• Net interest income and income from Islamic financing increased 2.0% to 210.49 million, while non-interest income surged 12.7% to 92.23 million, driven by higher business volumes and investment income.

• Customer deposits, including Islamic deposits, grew 13.2% year-over-year to 11,182 million, and net loans and advances rose 6.3% to 11,395 million.

• The bank continued digital transformation, expanding digital payment solutions and launching instant digital loans and merchant onboarding.

• Strategic focus on customer centricity, market leadership, efficiency, productivity, and innovation continues to drive value for stakeholders.

Financial highlights

• Operating income for the period reached 302.72 million, up from 288.28 million year-over-year.

• Operating expenses increased 5.8% to 114.38 million, mainly due to administrative, infrastructure, and technology investments.

• Net impairment losses on financial assets declined to 24.30 million from 30.16 million, a 20% reduction.

• Basic and diluted EPS for the period was 0.017, up from 0.015 year-over-year.

• Total assets grew to 16,292 million, up from 14,174 million a year earlier.

Outlook and guidance

• Loan growth for the full year expected to be slightly above 6%, supported by a strong pipeline and stable macroeconomic environment, barring significant geopolitical disruptions.

• Fee income anticipated to maintain high single-digit growth, with contribution to total income around 30%.

• Continued focus on prudent credit quality, selective growth in retail credit, and digital innovation, with more aggressive but risk-aware expansion planned for H2 2026.

• Emphasis on expanding digital services and supporting key sectors under Oman Vision 2040.