National Bank of Oman (NBOB) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached USD 44.4 million (OMR 17.08 million), up 10.4% year-over-year, driven by higher net interest and fee income.

• Operating profit grew 8.7% year-over-year, supported by digital adoption and new product launches.

• The five-year strategy (2021-2025) increased market share in loans and deposits, focusing on digital transformation and sustainability.

• Oman’s economic outlook remains positive, with fiscal reforms and diversification efforts ongoing.

Financial highlights

• Net interest income for Q1-25 was USD 67.7 million (OMR 26.06 million), up 3.2% year-over-year; fee income rose 16.2% to USD 36.5 million (OMR 14.07 million).

• Gross loans and advances grew 10.6% year-over-year to USD 10.8 billion (OMR 4.15 billion); customer deposits at OMR 4.01 billion.

• Total assets reached USD 13.7 billion (OMR 5.28 billion), a 2.0% increase from last year.

• Cost-to-income ratio improved to 40.4% in Q1-25 from 41.1% in Q1-24.

• Net impairment charges decreased by 1.7% to USD 9.9 million (OMR 3.81 million).

Outlook and guidance

• Strategic priorities include safeguarding funding and capital, optimizing revenue, and advancing sustainability and digitalization.

• Continued focus on digital transformation, customer-centric innovation, and supporting Oman Vision 2040.

• The bank aims to align with Oman Vision 2040 and Net Zero commitments by 2050, with 8% of lending portfolio to be allocated to renewable energy.

• Positive macroeconomic environment expected to support further growth in lending and fee-based businesses.