Bank Muscat (BKMB) H2 2024 earnings summary

Executive summary

• Oman's economy achieved a third consecutive year of surplus, with real GDP growing nearly 2% in the first nine months of 2024, driven by non-hydrocarbon activities growing 5%.

• Achieved net profit of RO 225.6m in 2024, up 6.2% year-over-year, with strong operating income and stable cost-to-income ratio.

• Maintains dominant market share in Oman with total assets of RO 13.9bn and a 32.5% share of total assets in the sector.

• Diversified business lines across corporate, retail, wholesale, and Islamic banking, with robust digital and branch networks.

• Inflation averaged 0.6% (Jan–Nov 2024), half of 2023's rate, and public debt-to-GDP fell from 61% in 2021 to 34% in 2024.

Financial highlights

• Net profit increased by 6.2% year-over-year to RO 225.6m, supported by healthy business growth and moderated credit cost.

• Net interest income and Islamic financing income rose 6.1% to RO 397.7m; non-interest income increased 5.1% to RO 145m.

• Operating profit reached RO 333.4m, up 5.4% from 2023; operating expenses increased 6.6% to RO 209.3m.

• Net loans and financing grew 3.6% to RO 10.2bn; customer deposits also up 3.6% to RO 9.8bn.

• Cost-to-income ratio stable at 38.6%; ROE improved to 12.7% in 2024, ROA at 1.64%.

Outlook and guidance

• Expectation of stable net interest margins in 2025, with focus on managing cost of funds amid strong competition.

• Loan growth anticipated to align with overall market and economic growth over the next 2–3 years.

• Positioned to benefit from Oman's economic diversification, stable political environment, and ongoing government reforms.

• Continued focus on digital transformation, fee income growth, and expanding Islamic banking footprint.

• Islamic banking (Meethaq) aims to diversify funding, expand retail deposits, and invest in digital channels for long-term profitability.