Omani Listed Banks' First-Half Profits Climb 10.6%, Led by Bank Muscat

H1 2026 Profit Growth Across Most Omani Listed Banks

Listed Omani banks delivered a collective net profit of OMR 305.38 million (USD 791.82 million) in the first half of 2026, an increase of 10.62% compared with OMR 276.07 million in the same period last year. The rise was fueled by higher earnings at six of the seven constituents, while only Bank Nizwa recorded a contraction.

Bank Muscat remained the sector’s profit engine, posting OMR 137.49 million, up 9.28% year-on-year. Sohar International Bank secured the second spot with OMR 53 million, a 14.72% improvement, followed by National Bank of Oman at OMR 39.09 million (+14.87%). Dhofar Bank’s profit grew 15.20% to OMR 27.26 million, Ahli Bank advanced 12.3% to OMR 25.11 million, and Oman Arab Bank registered the strongest growth among conventional lenders at 20.8%, reaching OMR 17.83 million.

Bank Nizwa, the sole Islamic bank in the group, saw profit drop 39.42% to OMR 5.59 million, from OMR 9.23 million a year earlier. The half-year expansion follows a 10.12% full-year profit increase for the seven banks in 2025, suggesting sustained momentum in the sultanate’s credit and fee-income environment.

Behind the Numbers: Concentration, Fast Growers and Nizwa’s Slump

Bank Muscat’s Commanding Share

Bank Muscat’s OMR 137.49 million profit accounted for roughly 45% of the aggregate, reinforcing its dominance in Omani banking. Its 9.28% growth, while solid, is slower than the aggregate’s 10.62%, indicating that smaller peers are gradually eroding its proportionate share of sector earnings.

Conventional Banks’ Broad-Based Advance

All five conventional banks reporting higher profits recorded double-digit or near-double-digit growth. Sohar International’s 14.72% rise allowed it to overtake National Bank of Oman by a wider margin, while Oman Arab Bank’s 20.8% surge points to effective loan-book expansion or cost control. The pattern suggests a favorable mix of rising net interest margins and moderate credit provisions across the sector.

Nizwa’s Sharp Fall Raises Questions

Bank Nizwa’s 39.42% decline—the only contraction—stands out. Without explicit disclosures, the drop could stem from higher impairment charges on Islamic financing assets, margin compression in the takaful or corporate segment, or one-off expenses. Its performance diverges from the otherwise upbeat picture and may reflect segment-specific headwinds for Islamic banking in Oman.

What the Results Mean for Investors and Bank Leadership

• Bank Muscat shareholders can take comfort in a stable 9.3% profit rise that supports its dividend capacity, but should monitor whether faster-growing rivals begin to narrow the market-share gap in retail and corporate lending.
• Investors in Sohar International, National Bank of Oman and Oman Arab Bank should examine the sustainability of their respective growth rates, particularly whether loan growth is matched by asset quality, as aggregate numbers do not reveal individual provisioning trends.
• Bank Nizwa’s management and investors need clarity on the 39.42% profit drop. The extent to which the decline is due to one-off provisions versus structural margin pressure will determine whether the bank’s Islamic banking franchise can recover lost profitability.
• Competitor banks should note that Oman Arab Bank’s 20.8% growth performance indicates that mid-tier players can materially improve their position. Reviewing its tactics in digital channels or SME lending could reveal replicable strategies.