Muscat – Total net profits of Omani companies listed on the Muscat Stock Exchange (MSX) rose by 4.0% year-on-year in Q1 2026, reaching $838.5mn (approximately RO323mn), compared to $806.4mn (approximately RO310mn) in the same period last year.

The overall growth in corporate earnings at the MSX was driven mainly by stronger performance in the banking, telecom and materials sectors, according to a research report by Kamco Investment. However, aggregate losses in the utilities and transportation sectors partially offset the gains during Q1 2026.

The banking sector posted a 10.3% increase in net profits, reaching $374.9mn in Q1 2026, up from $340mn in the corresponding period of 2025. Of the seven banks that disclosed results, six reported higher net earnings, while Bank Nizwa was the only one to record a year-on-year decline, the report said.

Bank Muscat recorded the largest absolute increase in net earnings among Omani banks, with Q1 2026 net profits rising to $166.1mn from $152.1mn in Q1 2025. This was supported by a 6.4% year-on-year increase in net interest income, which reached RO41.1mn ($106.9mn), along with lower impairment charges, strong fee income, and higher lending activity across Oman, the report noted.

Sohar International Bank posted the second-highest net profit among banks at $67.7mn in Q1 2026, up from $55.7mn in the same period of 2025. The bank’s earnings growth was driven by an overall improvement in operating income, which rose by 30% to RO71.3mn ($185.4mn), supported by higher net interest income and other operating income.

Meanwhile, total net earnings of the National Bank of Oman increased by 14% year-on-year to $50.6mn, while BankDhofar’s net profits rose by 8.8% year-on-year to $34.3mn over the same period.

Total net profits in the energy sector in Q1 2026 fell by 16.5% year-on-year to $283.9mn, compared to $340mn in Q1 2025. Out of the eight listed companies in the sector, six recorded higher earnings, while one posted a loss and another reported a decline in net profit.

According to the Kamco Investment report, OQ Exploration & Production (OQEP) posted the highest net profit in the sector at $187mn, despite a decline of 3.9% due to a 16% drop in realised Oman crude oil prices in the first quarter.

Aggregate net earnings in the diversified financials sector more than doubled, rising 2.12 times year-on-year in Q1 2026 to $112.4mn, compared to $53mn in Q1 2025. The increase was mainly driven by a 4.4-fold rise in Dhofar International Development & Investment Holding’s net earnings, which reached $42.7mn in Q1 2026 compared to $9.7mn a year earlier. Oman & Emirates Investment Holding also recorded strong growth, with net earnings rising to $10.9mn from $0.3mn.

The telecom sector recorded a 45.2% year-on-year increase in total net profits in Q1 2026, reaching $66mn compared to $45.5mn in Q1 2025, the report showed. The improvement was driven mainly by a 33.2% increase in Omantel’s net profits, which rose to $54.2mn from $40.7mn a year earlier. Ooredoo Oman also reported a strong 147.6% year-on-year increase in net profit, rising to $11.8mn in Q1 2026, up from $4.8mn in Q1 2025.

GCC corporate earnings rise 15%

Aggregate net profits of companies listed on the seven GCC exchanges increased by 15.5% year-on-year in Q1 2026 to a record quarterly high of $67.9bn, compared to $58.8bn in Q1 2025, according to the Kamco Investment report.

The growth in regional profitability was mainly driven by higher earnings in energy companies, particularly Saudi Aramco, followed by stronger profits in GCC-listed banks, as well as companies in the F&B and capital goods sectors. However, a sharp decline in profits in GCC telecom and transportation sectors partially offset the overall growth.

At the country level, listed companies in Qatar and Kuwait recorded declines in profits of 3.3% and 48.9%, respectively, during Q1 2026. However, higher profits across the remaining GCC markets more than offset this decline.

Saudi-listed companies posted the strongest growth in net profits, rising by $8.1bn or 22.2% to reach $44.4bn, followed by Abu Dhabi and Dubai, which recorded increases of $1.5bn and $0.8bn respectively.