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, marking the highest in the bank's 52-year history, with strong growth in deposits and loans.

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

• Maintained robust capital and liquidity positions, with a total capital adequacy ratio of 17.1% and liquidity coverage ratio of 277.6%.

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

• Maintained a strong presence in Oman, with a diversified business model across retail, wholesale, international, and Islamic banking.

Financial highlights

• Total assets grew to $30.6 billion, an 8.7% increase year-over-year; customer deposits reached $10.7 billion, up 14.4%; gross loans and advances grew 11.6% to $10.6 billion.

• Fee income rose 20.4% to $110.5 million, now comprising about 30% of total income; net interest income declined 1.6% due to higher funding costs.

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

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

• Customer deposits rose 14.4%, outpacing loan growth and supporting strong liquidity.

Outlook and guidance

• New five-year strategy in development, aiming for double-digit ROE and cost-to-income ratio around 40%.

• Focus on expanding fee income, digital channels, and targeted sector growth, especially in trade finance, investment banking, and wealth management.

• Continued investment in digital capabilities and ESG integration to attract new customers and capital.

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

• Regulatory changes, including new sector allocation requirements and risk-weight incentives, are being incorporated into future plans.