MUSCAT: Bank Muscat, Oman’s largest lender, posted an 8.9 percent increase in its first quarter net profit, beating analysts’ forecasts, as fee income swelled.
Bank made a profit of 43.3 million rials ($112.5 million) in the period ending March 31, compared to 39.8 million rials a year earlier, it said in a bourse statement.
Profit increase boosted Bank Muscat’s shares, which closed 0.4 percent higher against a decline of the same amount in the wider Oman bourse.
Higher operating income, driven by stronger than forecast fee income, was a key reason for the profit jump, said NBK Capital in a research note.
Fee income reached 36.2 million rials during the quarter, up 20.1 percent year on year.
Many Gulf banks have fallen back on fees from products like credit cards and treasury sales in recent quarters as a way to offset lower revenues from lending because of low interest rates.
Net loans and advances, including the Islamic lending portfolio, rose by 9.9 percent year on year to 6.9 billion rials at the end of March, the statement said.
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