Net profits of MSX-listed banks jump to OMR409mn

Muscat: The net profits of local banks listed on the Muscat Stock Exchange (MSX) jumped by 20.6 per cent to OMR409 million in 2022 compared to OMR338.9 million reported in 2021.

The preliminary financial statements announced by the six banks listed on the Muscat Stock Exchange showed an increase in the profits of all banks and a rise in their various financial indicators. This 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. Also, 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 aided the robust performance of the banks in Oman.

Bank Muscat recorded the highest profits at OMR200.7 million in 2022 compared to OMR189.6 million in 2021. However, the growth rate recorded by the bank is the lowest among the six banks, amounting to 5.8 per cent. The National Bank of Oman (NBO) ranked second with profits amounting to OMR48.2 million, recording an increase of 59.2 per cent in 2022 compared to OMR30.3 million in 2021. Bank Sohar came in third place, recording net profits of about OMR34.9 million in 2022 compared to OMR28.3 million in 2021, an increase of 23 per cent.

The National Bank raised its net profits last year to about OMR33.1 million in 2022, compared to OMR27.6 million in 2021, registering an increase of 19.9 per cent, while the net profits of HSBC Bank Oman increased from OMR18.3 million to OMR26.7 million, recording an increase by 45.9 per cent. The net profits of Oman Arab Bank increased to OMR16.2 million in 2022 compared to OMR7.1 million in 2021, recording an increase of 128.1 per cent, which is the highest rate of increase in bank profits during the past year. Bank Nizwa, which operates in accordance with Islamic Sharia, was able to increase its net profits in 2022 to OMR15 million compared to OMR12.5 million in 2021, an increase of 20 per cent.

The preliminary financial statements indicated that the assets of the six banks increased at the end of last year to OMR35.99 billion, registering an increase of about OMR90 million over their level at the end of 2021. All banks recorded an increase in their total assets during the past year, except Bank Muscat.
Bank Muscat accounted for 49 per cent of the total net profits recorded by banks during the past year and accounted for 35.4 per cent of the total assets of the six banks listed on the Muscat Stock Exchange.