National Bank of Oman (NBOB) Q3 2024 earnings summary

Executive summary

• Net profit for YTD Sep 2024 reached USD 118.7 million (OMR 45.70 million), up 5.5% year-over-year, with total assets at USD 13.0 billion (OMR 4.99 billion), a 10.8% increase from last year.

• Customer deposits grew 20.5% to USD 10.3 billion (OMR 3.97 billion), and gross loans and advances rose 9.2% to USD 10.3 billion (OMR 3.98 billion) compared to the same period last year.

• NBO's market share as of June 2024 was 12.7% in loans and 13.2% in deposits, maintaining its position among the top four Omani banks.

• Operating profit grew 3.4% year-over-year, supported by strong fee income growth and reduced operating expenses.

• The bank continues to execute its five-year strategic plan, regaining market share in both loans and deposits.

Financial highlights

• Net interest income for YTD Sep 2024 decreased by 3.5% year-over-year due to higher funding costs and new GRE sector loans.

• Fee income grew 16.9% to USD 82.0 million (OMR 31.56 million), and net impairment reduced by 2.0% to USD 31.3 million (OMR 12.06 million).

• Cost-to-income ratio improved to 41.1% from 42.2% year-over-year, reflecting robust expense control.

• Earnings per share for the period were OMR 0.024, up from OMR 0.023 last year.

• Return on average assets (ROAA) was 1.22%, and return on average equity (ROAE) was 8.92% for YTD Sep 2024.

Outlook and guidance

• The bank aims to continue executing its strategic priorities, focusing on market share growth and profitability.

• Oman's economic outlook remains stable, supported by fiscal prudence, moderate debt levels, and positive credit ratings.

• Oman's real GDP is projected to grow by 2% annually, with a budget surplus of 1.9% expected from 2024 to 2027, driven by oil prices and non-oil sector expansion.

• Non-oil sector growth is expected to reach 3.0% in 2024, with strong business and consumer confidence.

• The bank anticipates further improvements in financial and economic outlook as Oman progresses with Vision 2040 reforms.