Oman banks sees 20% jump in net profit to RO 409 million in 2022

Muscat: The net profits of Omani banks listed on the Muscat Stock Exchange (MSX) jumped by 20.6 percent to RO 409 million for the full year 2022 as  compared to RO 338.9 million net profits reported in 2021,

The preliminary financial results recently announced by the six banks listed on the Muscat Stock Exchange showed an increase in the profits of all the banks and the rise of their various financial indicators, according to Oman News Agency report.

The sharp rise in banking sector profits reflects the state of recovery of the Omani economy from the Covid-19 pandemic, as well as the government’s efforts to mitigate the effects of the pandemic on various economic activities.

The banks’ improved financial results also reflect the efforts made by banks to diversify their lending and financing portfolios and their contributions to financing projects implemented by the government and the private sector.

Bank Muscat posted the highest profits at OMR 200.7 million in 2022, compared to OMR 189.6 million in 2021. However, the 5.8 percent year-on-year growth in net profits recorded by Bank Muscat was the lowest growth among all the banks.

National Bank of Oman (NBO) ranked as distant second with its 2022 net profit amounting to OMR 48.2 million compared to RO 30.3 million in the previous year, recording an increase of 59.2 percent.

Sohar International Bank came at the third place, recording a net profits of about RO 34.9 million in 2022 compared to RO 28.3 million in 2021, an increase of 23 percent. BankDhofar’s net profit rose by 36 percent to RO 34.1 million last year as compared to RO 25.1 million reported in 2021

While the net profits of HSBC Bank Oman increased from RO 18.3 million in 2021 to RO 26.7 million in 2022, recording an increase by 45.9 percent.

Oman Arab Bank’s net profit surged by more than 128 percent to RO 16.2 million in 2022, compared to RO 7.1 million in 2021, recording the highest growth in banking sector in 2022,

Ahilibanks’net profit grew by 19.8 percent to RO 33.1 million in 2022 compared to RO 27.6million recored in the 2021. Fully-fledged Islamic bank Bank Nizwa was able to increase its net profit in 2022 to RO 15 million compared to RO 12.5 million in 2021, recording an increase of 20 percent.

Omani banks preliminary financial statement indicated that the total assets of the banks increased to RO 35.990 billion as of December 31, 2022, registering an increase of about RO 90 million over their level at the end of 2021.

All banks recorded an increase in their total assets during the past year, with the exception of Bank Muscat, whose assets declined from about RO 13.1 billion to RO 12.7 billion, recording a decrease of 2.3 percent.

Bank Muscat accounted for 49 percent of the total net profits recorded by banks during the past year, and accounted for 35.4 percent of the total assets of the six banks listed on the Muscat Stock Exchange.