National Bank of Oman (NBOB) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached USD 80.1 million (OMR 30.85 million), up 5.3% year-over-year, driven by strong deposit and loan growth, higher fee income, lower impairment losses, and cost optimization.

• Customer deposits grew 19.9% to USD 10.4 billion (OMR 3.99 billion), and gross loans increased 7.1% to USD 10.1 billion (OMR 3.89 billion) compared to the same period last year.

• Asset quality improved with NPL ratio declining to 4.4% and provision coverage at 98.3%.

• The bank advanced digital innovation initiatives, including fintech collaborations and new digital services.

• Oman's economy and banking sector remain robust, supported by fiscal reforms and strong fundamentals.

Financial highlights

• Net profit for H1 2024 was USD 80.1 million (OMR 30.85 million), up from USD 76.1 million in H1 2023.

• Total assets as of June 2024 stood at USD 12.9 billion (OMR 4.96 billion), a 10.5% increase year-over-year.

• Net impairment charges reduced by 20.4% to USD 19.8 million (OMR 7.61 million) in H1 2024.

• Fee income rose 18.7% to USD 56.8 million (OMR 21.87 million) in H1 2024.

• Net interest income for H1 2024 declined by 7.9% due to higher funding costs.

Outlook and guidance

• Strategic focus remains on regaining market share, increasing profitability, and executing a five-year plan initiated in 2020.

• Continued investment in technology and digital transformation to enhance customer experience and operational efficiency.

• Oman's economic outlook remains positive, with Fitch projecting a narrowing budget surplus and declining government debt.

• The bank expects continued growth in private sector credit and digital banking adoption.

• Management aims to maintain healthy funding, capital, and asset quality amid uncertain conditions.