Net profits of MSX-listed banks rise by 10.6% to top OMR300mn

Muscat: The net profits of local banks listed on the Muscat Stock Exchange rose in the first half of this year to OMR305.2 million, recording a growth of 10.6 percent compared to the same period last year, which amounted to OMR275.9 million Omani riyals.This growth came amid a positive economic climate, with credit granted to individuals and companies growing, driven by economic activity and the implementation of numerous projects by the government and the private sector, along with a continued rise in deposits. This provided banks with stable sources of funding, helped expand lending operations, and thus increased interest income. At the same time, banks worked to improve asset quality to reduce provisions for non-performing loans. Banks also worked to diversify income sources, focus on wealth management, control operating expenses, and invest in digital services as part of their plans to reduce costs.Preliminary financial results announced by banks on the Muscat Stock Exchange website indicated an increase in net profits for all banks except Bank Nizwa. Bank Muscat topped the list with profits of OMR137.4 million, followed by Bank Sohar International in second place with profits of OMR53 million, the National Bank of Oman came in third place with profits of OMR39 million, Bank Dhofar came in fourth place with profits of OMR27.2 million, Ahli Bank came in fifth place with profits of OMR25.1 million, and Oman Arab Bank came in at sixth place with net profits rising from OMR14.6 million to OMR17.6 million.Bank Nizwa’s net profits were affected by the increase in provisions for non-performing loans.Preliminary financial results indicated a 4 percent increase in operating profits from OMR14.9 million to OMR15.5 million. However, the increase in the provision for losses from OMR4.3 million to OMR9 million negatively affected the bank’s net profits, which declined in the first half of this year to about OMR5.6 million, compared to OMR9.2 million in the same period last year.At the end of last June, local banks listed on the Muscat Stock Exchange recorded a growth of 16.2 percent in total assets on an annual basis, rising to OMR50.1 billion compared to OMR43.1 billion in June of last year. Bank Muscat topped the list with assets of OMR16.3 billion, reaching 32.5 percent of the total assets of local banks. Bank Sohar International comes in second with assets of OMR10.2 billion, the National Bank of Oman in third place with assets of OMR6.2 billion, Bank Dhofar came in fourth place with assets of about OMR6.1 billion, and Oman Arab Bank in fifth place with consolidated assets of OMR4.7 billion.During the first half of this year, banks worked on implementing a number of initiatives aimed at increasing their profits and maintaining their competitiveness by expanding lending and increasing financing provided to companies, as well as expanding digital banking services and improving the quality of assets and services provided to customers.This performance was reflected in share prices and market capitalisation, which rose to OMR7.13 billion by the end of last June, compared to OMR5.72 billion last December. Bank Muscat leads the seven banks in market capitalisation, which amounted to OMR3.40 billion, representing 42.6 percent of the total market capitalisation of banks.Bank Sohar International comes in second place with market cap of about OMR1.3 billion, and the National Bank of Oman came in in third place market cap of of OMR811.3 million.The market capitalisation of the seven banks constitutes 35.2 percent of the total market capitalisation of public shareholding companies, which amounted to OMR20.25 billion by the end of last June.