Bank profits surge as oil prices rise, Covid cases dip in Oman

Muscat: The net profit of local banks listed with the Muscat Stock Exchange (MSX) went up to OMR200.2 million during the first half of the current year compared to OMR182.4 million during the corresponding period last year.

The increase is attributed to the remarkable growth in economic activities following the mitigation of the impact of COVID-19 pandemic and the increase in oil prices.

The initial financial results released by the banks in the website of MSX showed that Bank Muscat achieved the highest profit of OMR99.2 million, an increase of 4.9 per cent compared to the first half of last year, when the net profits of the bank stood at OMR94.9 million.

The net profits of Bank Muscat formed 49.5 per cent of the total net profits of the banks registered with MSX during the first half of the current year.

The results of most banks during the first half of the current year showed an increase in net profits with an exception in Bank Dhofar and Oman Arab Bank, which registered a decrease in their net profits.

National Bank of Oman (NBO) was ranked second in terms of profits, one place higher than last year when it was ranked third. The bank’s profits increased to over OMR22 million compared to OMR15.6 million during the corresponding period last year.

Sohar International bank secured the third place with OMR18.4 million against OMR15.2 million during the first half of last year.

Bank Dhofar secured the fourth place with net profits of OMR16.4 million compared to OMR17 million during the corresponding period last year.

The bank registered an increase from OMR10 million last year to OMR14.8 million this year, an increase of 48 per cent.

The net profits of Ahli Bank increased by 19 per cent from OMR13.3 million to OMR15.8 million in the first half of this year. Bank Nizwa registered an increase of 6 per cent with net profits increasing to OMR6.4 million against OMR6 million during the corresponding period last year.

The net profits of Oman Arab Bank (OAB) decreased to OMR7 million compared to OMR10.5 million during the same period last year.

The results showed an increase in the total assets of the eight banks which increased to OMR 36.2 billion by the end of June this year from OMR35.1 billion in the corresponding period last year.