Profit of Omani-listed banks rises 19% to $1.17bn in 2023

Bank Muscat

Omani banks listed on the Muscat Stock Exchange (MSX) recorded net profits of OMR453.5 million ($1.17 billion) in 2023, an annual increase of 18.6 percent.

The preliminary financial results showed that all seven banks listed on the stock exchange posted higher profits, the state-run Oman News Agency reported.

Bank Muscat led the rankings with a net profit of OMR212.4 million, up from OMR200.7 million in 2022. Sohar International secured second place with a net profit of OMR70.3 million, compared to OMR34.9 million in 2022.

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National Bank of Oman followed with OMR58 million, a year-on-year increase of 20.3 percent.

The total assets of Omani banks listed on MSX rose to OMR38.8 billion last year, up 14.9 percent from OMR33.7 billion in 2022.

The banking sector benefited from several local economic indicators last year, including economic growth, foreign trade, investment, government revenues and spending.

In its latest Article IV Consultation with Oman, published last week, the International Monetary Fund (IMF) projected real GDP growth of 1.4 percent this year, increasing to 2.9 percent and 3.5 percent over the next two years.

The fund also welcomed the progress on the reform agenda under Oman Vision 2040 and its goals to promote private sector-led growth.

Standard Chartered expects that Oman’s continued improvements in fiscal performance, de-leveraging (lowering debt) and commitment to reform could see the sultanate’s rating rebound “as early as 2024”.