Muscat: The growth came amid a positive economic environment, supported by higher credit growth to individuals and companies, continued expansion in government and private sector projects, and a steady rise in deposits.

According to preliminary financial results announced on the Muscat Stock Exchange website, most listed local banks reported an increase in net profits during the first half of the year, with the exception of Bank Nizwa.

Bank Muscat topped the list with net profits of RO 137.4 million, followed by Sohar International Bank with RO 53 million. The National Bank of Oman came third with RO 39 million, while Bank Dhofar ranked fourth with RO 27.2 million. Ahli Bank recorded net profits of RO 25.1 million, while Oman Arab Bank saw its profits rise from RO 14.6 million to RO 17.6 million.

Bank Nizwa’s net profits were affected by higher provisions for non-performing loans. The bank’s operating profits rose by 4 percent from RO 14.9 million to RO 15.5 million. However, provisions for losses increased from RO 4.3 million to RO 9 million, bringing down net profits to about RO 5.6 million, compared to RO 9.2 million in the same period last year.

The total assets of local banks listed on the Muscat Stock Exchange also recorded strong annual growth of 16.2 percent by the end of June, rising to RO 50.1 billion from RO 43.1 billion in June last year.

Bank Muscat led the sector in total assets with RO 16.3 billion, accounting for 32.5 percent of the combined assets of listed local banks. Sohar International Bank followed with RO 10.2 billion, while the National Bank of Oman recorded RO 6.2 billion. Bank Dhofar’s assets stood at about RO 6.1 billion, while Oman Arab Bank reported consolidated assets of RO 4.7 billion.

The strong performance was also reflected in share prices and market capitalization. The market value of the seven listed banks rose to RO 7.134 billion by the end of June, compared to RO 5.729 billion at the end of last December.

Bank Muscat led the banking sector in market capitalization at RO 3.04 billion, representing 42.6 percent of the total market value of listed banks. Sohar International Bank ranked second with about RO 1.3 billion, followed by the National Bank of Oman with RO 811.3 million.

The combined market capitalisation of the seven banks accounted for 35.2 per cent of the total market value of publicly listed companies, which stood at RO 20.257 billion by the end of June.