Total interest income—comprising conventional banking and Islamic financing—stood at RO 310.90 million, up 5.8 percent year-on-year. Non-interest income grew by 12 percent to RO 123.57 million, buoyed by increased business volumes and enhanced investment returns. Operating expenses rose by 5.3 percent to RO 162.82 million, while net impairments eased to RO 43.63 million from RO 46.12 million in 2024. The bank’s net loans expanded by 4.2 percent to RO 10,702 million, while total assets climbed 3.6 percent to RO 14,555 million. Customer deposits dipped marginally by 0.1 percent to RO 10,099 million, reflecting a slight shift in deposit patterns. Total equity, inclusive of perpetual Tier I capital of RO 505 million, rose by 5 percent to RO 2,528 million.
The doubling of growth in non-interest income suggests Bank Muscat is successfully diversifying its revenue streams beyond traditional lending. Investment income, fees and commissions, and other operating income have contributed more significantly to overall profits, signalling management’s efforts to reduce dependence on net interest margins.
Yet, challenges linger. The mild contraction in customer deposits points to competitive pressures in the deposit market, possibly from alternative savings vehicles or rising yields elsewhere. The bank must balance attractive deposit rates with cost control, especially when operating expenses are climbing at a moderate pace.
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