MUSCAT – The banking sector’s strong performance is attributed to the improved national economic indicators and increased demand for financing by both businesses and individuals. The launch of new projects and increased economic activity has further bolstered credit growth and profitability.

Bank Muscat posted the highest profits, recording RO 191.5 million — a 12.2 percent increase from RO 170.7 million in the same period last year. Bank Sohar International followed with RO 70.7 million in profits, while the National Bank of Oman secured third place with RO 51.8 million. Other notable performers include BankDhofar (RO 36 million), Ahli Bank (RO 32.4 million), Oman Arab Bank (RO 23.3 million), and Bank Nizwa (RO 14.8 million).

Banks also strengthened their balance sheets, with shareholders’ equity reaching RO 6.7 billion by the end of September 2025, up from RO 5.9 billion in September 2024. Total assets of the listed banks increased from RO 40.8 billion to RO 44.1 billion over the same period.

The seven banks listed on the Muscat Stock Exchange have taken several steps this year to achieve further growth in operational performance, diversify products, and increase profits. Bank Muscat issued bonds worth $750 million with a maturity of five years under its Euro Medium-Term Note programme. The bank stated that these bonds, which were subscribed to last September by regional and international investors, will be listed on the Irish Stock Exchange. It noted that this issuance aims to meet the bank’s long-term US dollar financing requirements to enhance the growth of its assets and support various financing projects.

During the current year, Bank Sohar International issued Tier 1 perpetual bonds worth RO 200 million through a private placement. These bonds were listed on the Muscat Stock Exchange on September 30.
In the same context, BankDhofar’s Extraordinary General Assembly, held in March 2025, approved the establishment of a Euro Medium-Term Note (EMTN) programme with an estimated amount of US$1 billion. The National Bank of Oman’s Extraordinary General Assembly, held in March, also approved plans to increase the bank’s capital in the form of one or more perpetual bond issuances of Additional Tier 1 Capital over the next five years from the date of approval by the Extraordinary Assembly, amounting to US$600 million or its equivalent in Omani Rials.

This year, a number of banks increased their capital through the issuance of rights shares. Oman Arab Bank issued rights shares worth RO 50 million at a price of 151 baisas per share, including issuance expenses. The shares were listed on the Muscat Stock Exchange on September 25, bringing the bank’s capital to RO 216.9 million.

This year, Ahli Bank issued rights shares worth RO 50 million at a price of 142 baisas per share as part of its plans to enhance capital and support business growth. The rights shares were listed on the Muscat Stock Exchange in August 2025, bringing the bank’s capital to RO 294.9 million.

Bank Nizwa also approved the implementation of a strategic plan to strengthen its capital base, which includes the issuance of additional Tier 1 capital worth RO 60 million. The bank stated that this programme is more in line with its long-term strategic objectives, given the bank’s interest in supporting expansion plans in the government business sectors, the private sector, and individuals, while enhancing its ability to meet the growing demand for financing that is compatible with Islamic Sharia provisions.

During the current year, Ahli United Bank of Bahrain sold its 35 percent stake in Ahli Bank to the Royal Court Affairs and a number of investors from the Sultanate of Oman. Ahli Bank stated that under this deal, the Royal Court Affairs owns 17.5 percent of Ahli Bank’s capital, while the remaining 17.5 percent is distributed among a number of Omani investors.

This year has seen banks show interest in expanding their international operations. Last August, Bank Sohar announced its intent to open a representative office in the People’s Republic of China or Hong Kong. The bank stated that this initiative is in line with its strategy and vision to enhance its presence in global financial markets.

Bank Nizwa also received preliminary approval from the Central Bank of Oman to proceed with the process of opening a branch in the Dubai International Financial Centre in the United Arab Emirates, this year. The bank stated that this initiative is in line with its vision to support its ambitions for growth and expand Islamic finance in the Sultanate of Oman on a global scale, enabling it to further capitalize on the opportunities available in the Islamic finance sector.

In the acquisition field, BankDhofar acquired the banking operations of Bank of Baroda, Oman branch. Meanwhile, Bank Sohar International contacted the Central Bank of Oman to obtain preliminary approval to submit a non-binding offer to acquire a 100 percent stake in Bait Insurance Company, known as ‘Beema’, the first integrated digital insurance platform.