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Profits of Omani banks rise 20% to RO409mn in 2022

21 Jan 2023 By OUR CORRESPONDENT

Muscat – Total net profits of Omani banks listed on the Muscat Stock Exchange (MSX) jumped by 20.6 per cent to RO409mn for the full year 2022 as compared to RO338.9mn net profits reported in 2021.

Preliminary financial results recently announced by the listed banks on the Muscat Stock Exchange showed an increase in profits of all the banks and the rise of their various financial indicators, according to an 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 profit at RO200.7mn in 2022 compared to RO189.6mn in the previous year. However, the 5.9 per cent year-on-year growth in net profit 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 RO48.2mn compared to RO30.3mn in the previous year, recording an increase of 59.2 per cent.

Sohar International Bank came at the third place recording a net profit of about RO34.9mn in 2022 compared to RO28.3mn in 2021, an increase of 23 per cent. BankDhofar’s net profit rose by 36 per cent to RO34.1mn last year as compared to RO25.1mn reported in 2021.

Net profit of HSBC Bank Oman increased from RO18.3mn in 2021 to RO26.7mn in 2022, recording a robust growth of 45.9 per cent.

Oman Arab Bank’s net profit surged by more than 128 per cent to RO16.2mn in 2022 compared to RO7.1mn reported in the previous year, recording the highest growth in banking sector in 2022.

Ahlibank’s net profit grew by 19.8 per cent to RO33.1mn in 2022 compared to RO27.6mn recorded in the previous year. Fully-fledged Islamic bank Bank Nizwa was able to increase its net profit in 2022 to RO15mn compared to RO12.5mn in 2021, recording an increase of 20 per cent.

Omani banks’ preliminary financial statements indicated that the total assets of the banks increased to RO35.990bn as of December 31, 2022, registering an increase of about RO90mn over the levels recorded 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 RO13.1bn to RO12.7bn, recording a decrease of 2.3 per cent.

Bank Muscat accounted for 49 per cent of the total net profits recorded by all banks during the last year and it accounted for 35.4 per cent of the total assets of the banks listed on the Muscat Stock Exchange.

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