Net profits of MSX-listed banks in Oman jump to $665mln in 2024 first half

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Muscat: The net profits of the banks listed on the Muscat Stock Exchange (MSX) have increased their profits, benefiting from economic activity, growth in trade volume and increased demand for financing and loans granted by banks to economic activities and individuals.

The net profits of these banks rose to OMR256.2 million in the first half of this year compared to OMR214.4 million in the same period last year, recording a growth of 19.5 percent.

In their reports to shareholders, the banks praised the economic growth witnessed by the Sultanate of Oman, the government’s commitment to achieving financial balance, improving the business environment and supporting small and medium enterprises (SMEs).

The efforts made to achieve economic diversification, and the need for the banking sector to maintain comfortable ratios of capital and liquidity in light of the quality of assets and the expansion of credit granted to the private sector with the aim of stimulating economic activity.

In the first half of this year, banks focused on enhancing their digital transformation projects, providing many facilities in this regard to encourage customers to conduct their transactions electronically, which contributed to the increase in the number of customers registered for online banking services.

The first half of this year also witnessed a significant increase in commercial transactions via point-of-sale devices. Banks also moved to open more branches to increase their spread, reduce customer waiting periods, and improve services. Some banks also launched a remote payment service, which is a new technology that allows merchants and business owners to accept card payments directly on their phones and smart devices.

Bank Muscat topped the banks in terms of profits achieved after its net profits rose in the first half of this year at OMR112.1 million compared to OMR0104.3 million in the same period last year. Bank Sohar International came posted net profit of OMR50 million, National Bank of Oman (NBO) reported net profit of OMR30.8 million, Bank Dhofar of OMR22.1 million, Ahli Bank of OMR20.2 million, Oman Arab Bank posted a net profit of OMR12.7 million, while Bank Nizwa, which operates according to Islamic law, reported a net profit of OMR8 million. The bank was able to achieve a 10.9 percent increase in its net profits during the first half of this year compared to profits of OMR7.2 million in the same period last year.

All banks were able to increase their net profits in the first half of this month. Sohar International Bank recorded the highest growth with its net profits rising to OMR50.2 million in the first half of 2024 compared to OMR23.6 million in the same period last year, recording a growth of 112.2 percent. This growth came as a result of the merger with HSBC Bank Oman, which officially left the trading screens on the Muscat Stock Exchange on August 20, 2023 with the completion of the merger of the two banks, while Ahli Bank recorded the lowest growth rate at 1.4 percent from OMR19.9 million to about OMR20.2 million.

The unaudited financial data indicated that the assets of local banks listed on the Muscat Stock Exchange increased to OMR40.5 billion by the end of last June recording a growth of 13.8 percent over their level in June 2023, which amounted to OMR35.5 billion. Bank Muscat, with total assets of about OMR14.2 billion, accounts for 35 percent of the total assets of local banks listed on the Muscat Stock Exchange.

The capital of the seven banks listed on the Muscat Stock Exchange also increased by the end of last June to OMR2.417 billion compared to OMR2.250 billion on June 30, 2023. This increase coincided with the merger of Bank Sohar International and HSBC Bank Oman through amalgamation. Bank Sohar also distributed free shares to its shareholders at a rate of 1.95 percent, increasing its capital by the end of June to OMR572.5 million, compared to OMR455.3 million in June of last year. Ahli Bank recorded an increase in its capital from OMR194.9 million to OMR244.9 million, while the other banks did not witness any increase in their capital. Bank Muscat leads the banks in terms of capital size with OMR750.6 million, acquiring 31 percent of the total capital of local banks listed on the stock exchange.