Saturday 18 / October / 2025
Muscat: The net profits of Omani banks listed on the Muscat Stock Exchange (MSX) rose to OMR420.7 million in the first nine months of this year, compared to OMR390 million during the same period last year, registering a growth of 7.8 percent.
Banks benefited from the improved performance of the national economy during the current year. Local economic indicators were reflected in banks' performance, with the announcement of new projects and the shift of companies and individuals toward financing provided by the banking sector.
Bank Muscat achieved the highest profits at OMR191.5 million, registering a 12.2 percent increase over the net profits achieved by the bank in the same period last year, which amounted to OMR170.7 million. Bank Sohar International came in second with profits of OMR70.7 million, followed by National Bank of Oman (NBO) in third place with profits of OMR51.8 million, Bank Dhofar in fourth place with profits of OMR36 million, Ahli Bank in fifth place with a profits of OMR32.4 million, Oman Arab Bank (OAB) came in sixth place with profits of OMR23.3 million and Bank Nizwa in seventh place with profits of OMR14.8 million.
During the current year, banks increased their shareholders' equity to OMR6.7 billion by the end of September 2025, compared to OMR5.9 billion in September of last year. Total assets of banks rose from OMR40.8 billion to OMR44.1 billion.
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 OMR200 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 $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.
This year, a number of banks increased their capital through the issuance of rights shares. Oman Arab Bank issued rights shares worth OMR50 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 OMR216.9 million.
This year, Ahli Bank also issued rights shares worth OMR50 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 OMR294.9 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 OMR60 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, and enhancing the bank’s ability to meet the growing demand for financing that is compatible with Islamic Sharia provisions. It indicated that this increase will strengthen the bank’s strength, enhance its ability to seize future opportunities, and achieve sustainable value for shareholders, the bank’s customers, and the community.
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 it was considering opening 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.
This year, Bank Nizwa received preliminary approval from the Central Bank of Oman (CBO) to proceed with the process of opening a branch in the Dubai International Financial Centre (DIFC) in the United Arab Emirates. 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, during the current year. For its part, 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.
This news has had a positive impact on bank stocks, which have achieved significant gains this year.
