Bank Muscat closes its branch in Kuwait

Bank Muscat, Oman’s largest bank, has said it is closing its branch in Kuwait, a move analysts say reflects a strategy to focus on its domestic operations.

In a disclosure on the Omani bourse, the bank did not give the reason for its pullout from Kuwait but analysts say financial uncertainties in the region may well be the reason.

“The financial sector in the GCC is currently facing challenges such as lower interest rates, geopolitical uncertainties and oil price instability and that may well be the reason for Bank Muscat to pull out and concentrate locally,” Nasser Al Brashdi, executive director at Majan Investment, told AGBI. 

Bank Muscat reported a 12 percent year on year rise in net profit of OMR191.6 million ($496 million) in the first nine months of this year, pushed up by higher interest and operating income.

In September, Bank Muscat raised $750 million from Euro Medium Term Note bonds which will be listed on the Irish bourse.

The bank has the largest total assets in Oman, with assets of more than OMR13 billion.

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It was formed in 1982 as a joint venture between the Omani government and HSBC and became a public company in 1993 following its merger with Bank Al Ahli Al Omani. 

Bank Muscat is a publicly traded company listed on the Muscat Securities Market since 2007. The largest single shareholder is the Government of Oman, holding about a quarter of the shares.

Its share price is OMR0.33, an increase of about a third in the last year.