National Bank of Oman (NBOB) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 reached 182.4 million (OMR or USD as per context), up 11.3% year-over-year, with total assets growing 6.7% to 14.5 billion and strong growth in gross loans, advances, and fee income.

• Completed a successful five-year strategy and launched a new three-year PRIME strategy focused on profitability, sustainable growth, innovation, and technology investment.

• Maintained a strong and stable shareholding base, with significant investments in technology, digital transformation, and compliance with new regulatory frameworks.

• Benefited from Oman's improved macroeconomic environment, including public debt reduction, sovereign rating upgrades, and alignment with Oman Vision 2040.

Financial highlights

• Gross loans and advances grew 5.8% to 11.2 billion; total assets reached 14.5 billion, up 6.7% year-over-year.

• Net interest income increased 2.9% to 290.8 million despite margin pressures; fee income rose 21.2% to 133.9 million.

• Cost-to-income ratio improved to 40.6% from 41.6%, now second best in the industry.

• Provision coverage ratio at 94.8%; NPL ratio improved to 4.5%.

• Capital adequacy ratio at 20.4% after 450 million AT1 issuance; CET1 at 11.7%.

Outlook and guidance

• Expectation of continued NIM improvement in the next two quarters, though global rate trends remain uncertain.

• Targeting ROE in the 10%-11% range, with a focus on sustainable, double-digit returns.

• Dividend payout ratio maintained at around 25% to balance shareholder returns and capital retention.

• Anticipate capital adequacy to normalize to ~17.5% post-AT1 call in March 2026.

• Strategic roadmap aims to increase market share and profitability, focusing on digital innovation and green finance.