National Bank of Oman (NBOB) Q4 2024 earnings summary

Executive summary

• Achieved record net profit of $163.8 million in 2024, up 8.7% year-over-year, the highest in the bank's 52-year history.

• Completed the final year of a five-year strategic plan, increasing market share in loans and deposits, and focusing on balance sheet strength and sustainable growth.

• Maintained a strong position in the Omani market with a diversified business model across retail, wholesale, international, and Islamic banking.

• Significant investment in technology, digital transformation, and ESG priorities.

• Maintained robust capital and liquidity positions, with total capital adequacy at 17.1% and liquidity coverage ratio at 277%.

Financial highlights

• Customer deposits reached $10.7 billion, up 14.4% year-over-year; gross loans and advances grew 11.6% to $10.6 billion.

• Total assets grew to $30.6 billion, an 8.7% increase from the previous year.

• Fee income rose 20.4% to $110.5 million, now comprising about 30% of total income.

• Cost-to-income ratio improved to 41.6%, better than industry average.

• Net impairment charges reduced by 10% to $36.7 million, reflecting improved asset quality.

Outlook and guidance

• Preparing a new five-year strategy aiming for double-digit ROE and a cost-to-income ratio around 40%.

• Focus on expanding fee income, digital channels, and maintaining leadership in technology and ESG investments.

• Strategic priorities include value creation, sustainability, and leveraging partnerships.

• Anticipates continued prudent capital management and steady payout growth aligned with profit growth.