Saturday 09 / May / 2026
Muscat: The net profits of local banks listed on the Muscat Stock Exchange rose in the first quarter of this year to OMR144.3 million, compared to OMR130.9 million in the same period last year, registering a growth of 10.2 percent.
Banks boosted their gains in the first quarter of this year, benefiting from increased government spending, improved overall economic performance, expanded financing of government projects, private sector projects, small and medium enterprises, and increased deposit volumes. Banks also focused on increasing the efficiency of banking services provided to individuals and companies, expanding electronic banking services, working to diversify revenue sources, improving asset quality, and reducing non-performing loans.
All banks recorded an increase in their net profits except for Bank Nizwa, whose profits declined in the first quarter of this year to OMR2.6 million, compared to profits of OMR4.5 million in the same period last year. Bank Muscat topped the list of banks with the highest net profits, exceeding OMR63.9 million, compared to OMR58.5 million in the same period last year.
Bank Sohar International achieved a jum in its net profits, which rose in the first quarter of this year to OMR26.1 million, compared to OMR21.4 million in the same period last year, an increase of 21 percent. The National Bank of Oman (NBO) came in third place with net profits of OMR19.4 million, Bank Dhofar came in fourth with net profits of 13.2 million, Ahli Bank came in fifth with net profits of OMR10.8 million, and Oman Arab Bank came in sixth place with net profits of OMR8.2 million.
Financial data released by banks indicated that the volume of assets at the end of March 2026 increased by 13 percent to reach OMR47.7 billion, compared to OMR42.2 billion in March 2025, while shareholders’ equity increased from OMR6.1 billion to about OMR7.1 billion, registering a growth of 16.4 percent.
Bank Muscat accounted for 32 percent of the total assets of banks listed on the Muscat Stock Exchange, recording an annual growth of about 7 percent in asset size by the end of last March, rising to OMR15.3 billion Omani riyals compared to OMR14.3 billion Omani riyals in March 2025. Bank Sohar came in second with asset size of OMR9.6 billion, and the National Bank of Oman (NBO) came in third with asset size of OMR5.9 billion.
During the current year, banks announced a number of ambitious plans to raise their efficiency, enhance the services provided, improve their overall performance, and increase their contributions to the national economy. Shareholders of a number of banks approved, in extraordinary general assembly meetings held in the first quarter of this year, an increase in their capital as part of their efforts to strengthen their financial solvency, expand lending and financing programs, and increase their ability to cope with risks.
The Extraordinary General Assembly of Bank Muscat approved increasing the bank's authorised capital from OMR800 million to OMR1.2 billion. The Extraordinary General Assembly of Bank Dhofar approved increasing the bank's capital to OMR500 million over the next five years. The Extraordinary General Assembly of Bank Nizwa approved a proposal to establish a programme to issue Sukuk Mudaraba worth OMR60 million through 4 issuances of OMR15 million each. Bank Sohar shareholders approved issuing Tier 1 shareholder bonds that are mandatory convertible into shares at maturity, up to a maximum of approximately 259.5 million bonds at an issuance price of 102 baisa per bond. These decisions are subject to regulatory approval.
During the first quarter of this year, banks distributed dividends to their shareholders. Bank Muscat distributed cash dividends of 18 baisa per share, Ahli Bank distributed cash dividends of 6 baisa per share and mandatory convertible bonds of 6 baisa as well, National Bank of Oman distributed cash dividends of 10.5 baisa per share, Bank Dhofar shareholders approved the distribution of cash dividends of 7.5 baisa per share, Oman Arab Bank distributed cash dividends of 5 baisa per share, Bank Nizwa distributed cash dividends of 2.7 baisa per share and distributed free mandatory convertible Mudaraba certificates equivalent to 4.47 certificates per 100 shares, and Bank Sohar International distributed 4 baisa per share.
The financial results recorded by banks in the first quarter of this year were reflected in their market value, which rose by the end of last April to OMR7.72 billion, recording gains of about OMR2 billion compared to its level at the end of last year. This rise came as a result of the increases recorded by stocks with the rise in investor sentiment and positive expectations that banks would be able to achieve growth in their performance in conjunction with the improvement in the performance of the national economy and the increase in government spending and its economic and social repercussions.
