Muscat: Omani banks are experiencing a financial windfall, with net profits reaching RO 256.2 million in the first half of 2024, a significant 19.5% increase from RO 214.4 million recorded during the same period last year. This growth reflects a thriving economy, improved trade volumes, and increased lending to both businesses and individuals.

The banking sector’s robust performance is attributed to the Sultanate of Oman’s economic growth, government initiatives aimed at financial stability, and enhanced support for small and medium enterprises. Banks have praised the government’s efforts in economic diversification and improving the business environment, bolstering their financial health.

Digital transformation has been a key focus for banks, contributing to the rise in customer registrations for online banking services and a boost in commercial transactions through point-of-sale devices. The sector has also seen physical branches expand and introduced innovative payment technologies, including remote payment services for merchants.

Bank Muscat leads the pack with a net profit of RO 112.1 million, followed by Bank Sohar International with RO 50 million. National Bank of Oman and Bank Dhofar secured third and fourth positions with RO 30.8 and RO 22.1 million, respectively. Ahli Bank and Oman Arab Bank followed with RO 20.2 million and RO 12.7 million. Bank Nizwa, adhering to Islamic principles, saw a 10.9% profit increase to RO 8 million.

Sohar International Bank reported the highest growth rate, thanks to its merger with HSBC Bank Oman, with profits surging 112.2% to RO 50.2 million. In contrast, Ahli Bank saw the smallest growth rate at 1.4%, with profits rising to RO 20.2 million.

The sector’s total assets grew by 13.8% to RO 40.5 billion by June 2024, up from RO 35.5 billion the previous year. Bank Muscat remains the largest player, with RO 14.2 billion in assets, comprising 35% of the sector’s total. The combined capital of the seven banks also rose to RO 2.417 billion.