HomeBanking & FinanceOmani bank profits surge to $1.066 bn in 2022
By Economy Middle East
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January 23, 2023 10:24 am

Omani bank profits surge to $1.066 bn in 2022

Jumping by 20.6 percent
Omani bank profits
Muscat bourse (Photo Credit: MSX)

Total net profits of Omani banks listed on the Muscat Stock Exchange (MSX) increased by 20.6 percent to 409 million Omani riyals ($1.066 bn) in 2022, up from in 2022, up from 338.9 million riyals ($883.46 million) in 2021.

According to an Oman News Agency report, preliminary financial results recently announced by MSX’s listed banks showed increased profits for all banks.

Read more: Oman’s banks confront challenges, to play role in “Vision 2040”

The sharp surge in such profits reflects the Omani economy’s recovery from the Covid-19 pandemic and the government’s efforts to mitigate the pandemic’s effects on various economic activities.

Banks’ improved financial results also reflect their efforts to diversify their lending and financing portfolios, as well as their contributions to government and private-sector financing projects.

Bank Muscat reported the highest profit in 2022, at 200.7 million riyals, up from 189.6 million riyals the previous year.

Net interest income from conventional banking and Islamic financing combined was 344.86 million riyals for the fiscal year ended 31 December 2022, up 2.8 percent from 335.54 million riyals for the same period in 2021, according to a recent bourse filing.

Net impairment was 59.94 million riyals in 2021, compared to 60.22 million riyals in the same period the previous year.

National Bank of Oman (NBO) ranked as a distant second with its 2022 net profit amounting to 48.2 million riyals compared to 30.3 million riyals in the previous year, recording an increase of 59.2 percent.

Sohar International Bank came in third place recording a net profit of about 34.9 million in 2022 compared to 28.3 million riyals in 2021, an increase of 23 percent. BankDhofar’s net profit rose by 36 percent to 34.1 million last year as compared to 25.1 million riyals reported in 2021.

Additionally, the net profit of HSBC Bank Oman increased from 18.3 million riyals in 2021 to 26.7 million riyals in 2022, recording a robust growth of 45.9 percent.

Oman Arab Bank’s net profit surged by more than 128 percent to 16.2 million riyals in 2022 compared to 7.1 million riyals reported in the previous year, recording the highest growth in the banking sector in 2022.

Similarly, Ahlibank’s net profit grew by 19.8 percent to 33.1 million riyals in 2022 compared to 27.6 million riyals recorded in the previous year.

Furthermore, the fully-fledged Islamic bank Bank Nizwa was able to increase its net profit in 2022 to 15 million riyals compared to 12.5 million in 2021, recording an increase of 20 percent.

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