Bank Muscat profit climbs 9.2% to OMR 209.18 million in nine months

Summary

• Bank Muscat reported OMR 209.18 million net profit for the nine months to September 2026.
• Provisions for loan defaults fell to OMR 32.76 million from OMR 43.63 million.
• Lower provisioning signals easing credit stress across Oman's banking sector.

The latest

Bank Muscat's net profit reached OMR 209.18 million in the first nine months of 2026, a 9.2% increase on the OMR 191.57 million recorded a year earlier, according to the bank's figures carried by Oman News Agency. Core income lines and fee-based revenue both expanded, while the bank set aside sharply less money against bad loans than in the same period of 2025.

Details

• The headline number: Net profit for the nine months ending 30 September 2026 stood at OMR 209.18 million, against OMR 191.57 million in the equivalent 2025 period, according to Oman News Agency citing the bank's figures. That is a gain of roughly OMR 17.6 million year on year, or 9.2%.
• Core income: Net interest income from conventional banking combined with Islamic financing income rose 3.4% to OMR 321.4 million, up from OMR 310.9 million a year earlier. It remains the largest single contributor to the bank's revenue base, more than double the size of all other operating income combined.
• Fee and other revenue: Other operating income climbed 6.5% to OMR 131.63 million from OMR 123.57 million. The non-interest line grew faster than core lending income over the period, a pattern that reduces dependence on interest margins in a market where rates are tied closely to the dollar.
• Cost side: Operating expenses increased 5.8% to about OMR 172.27 million from OMR 162.82 million. Cost growth outpaced the 3.4% rise in net interest and Islamic financing income, though it trailed the expansion in fee-based revenue. The bank did not break down the drivers behind the higher spending.
• Provisioning: The bank allocated OMR 32.76 million to cover net loan defaults and other potential losses, down from net provisions of OMR 43.63 million in the same period of 2025. The OMR 10.87 million reduction accounts for more than half of the total year-on-year profit improvement.
• What was not disclosed: The figures released through Oman News Agency cover profit, income lines, expenses and provisions. The bank did not publish a loan book total, deposit base, capital ratios or a non-performing loan ratio alongside the nine-month results, nor did it issue guidance for the final quarter.
• Reporting channel: The results were carried by Oman News Agency on 15 October 2026, drawing on data issued by the bank. A corresponding Muscat Stock Exchange disclosure was not available at the time, with the market closed for the weekend.
• Also: The bank did not disclose a full-year profit outlook.

Background

Bank Muscat is Oman's largest lender and operates both conventional and Islamic banking arms, the latter reported within the combined financing income line. Its quarterly results are among the closest-watched indicators of credit conditions in the Omani economy.

Between the lines

The profit gain is not primarily a revenue story. Core interest and financing income grew 3.4% while costs rose 5.8%, meaning operating leverage worked against the bank. The decisive swing came from provisions falling by OMR 10.87 million, which suggests fewer loans deteriorating or recoveries on previously impaired exposures. Without a disclosed non-performing loan ratio, the durability of that improvement remains an open question.

What's next

Watch for the formal disclosure on the Muscat Stock Exchange when trading resumes, full-year 2026 results in early 2027, and whether provisioning stays at the lower level or rebounds in the fourth quarter.

Source: Oman News Agency