Oman’s banking sector has once again demonstrated its resilience and adaptability, closing 2024 with a strong performance that underscores its pivotal role in the nation’s economic landscape. Preliminary results for the fourth quarter paint a picture of robust growth across key financial metrics, reflecting both prudent management strategies and growing consumer confidence.

The performance of major banks has not only contributed to financial stability but also highlighted the sector’s readiness to support Oman’s broader economic ambitions under Vision 2040.

The total assets of Omani banks continued their upward trajectory, with Bank Muscat, the sector’s leader, reporting a 2.7% increase to RO 14.04 billion. This steady growth was complemented by the notable performance of Bank Nizwa, which posted a significant 17.3% rise in total assets, reaching RO 1.89 billion.

The figures reflect a sector-wide commitment to strategic asset management and effective resource allocation.

Customer deposits have also shown remarkable growth, underscoring the trust placed by consumers in Omani banks. Bank Dhofar recorded a 14.1% increase in deposits, totaling RO 3.76 billion, while Bank Nizwa outperformed its peers with 23.8% growth. These results highlight the increasing popularity of Islamic banking services and the sector’s ability to attract and retain a diverse customer base.

Net profits after tax provided further evidence of the sector’s strong financial health. Sohar International emerged as a standout performer, with net profits surging by 42.5% to RO 100.2 million.

Similarly, Ahli Bank posted a remarkable 48.1% growth in profits, reaching RO 30.4 million. Such figures underscore the banks’ ability to balance growth with profitability, even amidst a challenging global economic environment.

The sector also reported steady growth in operating profits despite rising expenses. For instance, Bank Muscat achieved a 5.4% increase in operating profits, reaching RO 333.4 million.

Meanwhile, improved credit quality was evident in the reduced provisioning for financing. Bank Dhofar, for example, reported a 24.8% decrease in provisions, signaling better risk management and a stronger financial position.

The significant growth in customer deposits indicates enhanced consumer confidence, particularly in Islamic banking. At the same time, the rise in total assets and profits underscores the banks’ ability to capitalize on strategic opportunities and deliver value to stakeholders.

The diversification of services, coupled with prudent financial management, has positioned Omani banks as key enablers of economic growth. Their contribution to financial stability and their alignment with the goals of Vision 2040 make them integral to the nation’s broader economic transformation.

The strong performance in 2024 sets a solid foundation for Omani banks to build upon in 2025. With ongoing economic reforms and diversification efforts, the sector is poised to play a critical role in driving sustainable growth. Enhanced credit quality, expanding customer bases, and strategic investments are expected to further strengthen the sector’s position as a cornerstone of Oman’s economy.

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