National Bank of Oman (NBOB) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached USD 88.4 million (OMR 34.03 million), up 10.3% year-over-year, with total assets at USD 14.3 billion, a 10.9% increase, driven by higher net interest and fee income, and lower impairment charges.

• Operating profit grew 6.9% year-over-year, with strong growth in both conventional and Islamic banking segments.

• Emphasized strong management, robust risk management, and conservative underwriting, with a focus on sustainable growth and value creation.

• Oman’s economy remains resilient, with real GDP projected to grow 2.3% in 2025, inflation at 1.5%, and positive macroeconomic and regulatory environment.

• Credit rating upgrades for both Oman and the bank reflect fiscal consolidation and economic diversification.

Financial highlights

• Cost-to-income ratio improved to 40.76% for H1 2025, outperforming the industry average, with operating income at USD 206.3 million.

• ROE rose to 8.9% in H1 2025; ROA for Q2-25 was 1.29%.

• Net interest income for H1 2025 was OMR 53.34 million, up 1.7% year-over-year; fee income rose 19.4%.

• Gross loans and advances grew 9.1% year-over-year to USD 11.0 billion (OMR 4.24 billion); deposits reached USD 10.9 billion (OMR 4.21 billion).

• Net impairment charges decreased 6.8% year-over-year, with NPL ratio at 4.6%.

Outlook and guidance

• New three-year strategy under development, to be approved by the board in Q4 2025.

• Strategic focus on safeguarding capital, optimizing revenue, advancing digital transformation, and ESG initiatives.

• Management remains conservative on risk and capital, with no forward-looking guidance on stage two loans or capital raising.

• The bank expects to maintain growth momentum, supported by digital innovation, new product launches, and strategic partnerships.

• Focus remains on sustainable ROE before considering any equity raise.