11/05/2026 03:58 AST
Net profits at Oman's listed banks rose 10.2 percent in the first quarter of 2026 to 144.3 million Omani rials ($375.2 million), supported by stronger lending activity, rising deposits and higher government spending.
The combined profit increase from 130.9 million rials a year earlier reflects improving economic conditions in the sultanate as banks expanded financing for government projects, businesses and small and medium-sized enterprises, according to data reported by the Oman News Agency.
The results underscore the strengthening position of Oman's banking sector as the country continues efforts to diversify its economy and boost non-oil growth. Banks also benefited from expanding digital services, improving asset quality and broader lending activity.
This comes as Moody's Ratings recently revised its outlook for Oman's banking sector to stable from positive, citing resilient operating conditions, sustained economic growth and improving asset quality.
"All banks recorded higher net profits except Bank Nizwa," ONA reported, noting the lender's profit declined to 2.6 million rials in the first quarter from 4.5 million rials a year earlier.
Bank Muscat topped the list in terms of net profits, exceeding 63.9 million rials, compared with 58.5 million rials in the same period last year.
Sohar International posted one of the strongest gains among listed lenders, with net profit rising to 26.1 million rials from 21.4 million rials in the same period last year.
The National Bank of Oman ranked third in profitability with 19.4 million rials, followed by Bank Dhofar at 13.2 million rials, Ahli Bank at 10.8 million rials and Oman Arab Bank at 8.2 million rials.
According to ONA, total assets of banks listed on the Muscat Stock Exchange rose 13 percent year on year to 47.7 billion rials by the end of March, while shareholders' equity increased 16.4 percent to about 7.1 billion rials.
Bank Muscat accounted for around 32 percent of the sector's total assets, with its balance sheet expanding to 15.3 billion rials from 14.3 billion rials a year earlier. Sohar International ranked second with 9.6 billion rials in assets, followed by the National Bank of Oman with 5.9 billion rials.
"Banks announced a number of ambitious plans during the current year to improve efficiency, enhance services, strengthen overall performance, and increase their contribution to the national economy," ONA stated.
It added that shareholders in several banks also approved capital increases during extraordinary general assembly meetings held in the first quarter of the year, as part of efforts to bolster financial solvency, expand lending and financing programs, and enhance their capacity to withstand risks.
Bank Muscat approved an increase in authorized capital to 1.2 billion rials from 800 million rials, while Bank Dhofar unveiled plans to raise capital to 500 million rials over the next five years.
Bank Nizwa approved a 60 million-rial mudaraba sukuk issuance program, while Sohar International shareholders backed the issuance of Tier 1 convertible bonds worth up to about 259.5 million bonds, subject to regulatory approval.
Listed bank shares also advanced, with the sector's market value rising to 7.73 billion rials by the end of April, gaining about 2 billion rials from the end of 2025, according to ONA.
Arab News
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