MUSCAT: The total net profits for listed companies on Muscat Stock Exchange (MSX) increased by 16.2% in 2022 to $1.7 billion compared with $1.4 billion in 2021 following higher profits for the banking and diversified financial sectors during the year, according to a new report.
In 2022, the banking sector witnessed net profits growth of 20.7% to reach $1.1 billion up from $880.3 million in 2021. Bank Muscat recorded a net profit of 5.9% growth to reach $521.5 million up from $492.5 million in 2021. Bank Muscat’s net earnings represented 49.1% of aggregate 2022 net earnings of the banking sector. The bank’s earnings growth was underpinned by growth in net interest income from conventional banking and net income from Islamic financing, Kamco Invest — a Kuwait-based investment strategy and research — said in a report.
The largest yearly profits growth in the banking sector for 2022 was recorded by National Bank of Oman (NBO). The bank also posts the second biggest net profits among the banks recording net profits of $125.2 million as compared with $78.6 million in 2021.
In terms of quarterly earnings performance, aggregate net profits for companies listed in the MSX recorded 12.7% growth to reach $169.7 million during Q4 2022 up from $150.6 million during the similar period in 2021. Seven out of the fourteen sectors witnessed y-o-y growth in Q4 2022 net profits led by the banks, telecoms and F&B sectors.
The aggregate earnings for the banking sector in Q4 2022 reached $198.8 million as compared to $175.9 million during Q4 2021. Bank Dhofar was one of the banking sector’s top performing banks during the quarter which recovered from a loss of $8.2 million in Q4 2021 to a net profit of $8.8 million during Q4 2022. Similarly, Oman Arab Bank announced a net profit of $0.74 million during Q4 2022 recovering from a loss of $11 million during the similar period of 2021, the report said.
Total Q4 2022 net profits of the telecoms sector jumped 119.6% y-o-y to reach $115.7 million as compared with $52.7 million in Q4 2021. Omantel posted a net profit of $107.9 million in Q4 2022 recording a 129.3% y-o-y jump from $47.1 million in Q4 2021. Omantel’s growth in quarterly earnings was attributed to growth in mobile postpaid revenues which increased by 11.2% and the fixed broadband and cost optimisation measures. Ooredoo Oman also posted higher profits of $7.8 million in Q4 2022 earnings as compared to $5.6 million in Q4 2021.
In the F&B sector, total Q4 2022 net profits reached $19.0 million up from a loss of $10.0 million in Q4 2021. Oman Refreshment Co single-handedly lifted the sectors aggregate into the green after its profits jumped from $0.42 million in Q4 2021 to reach $15.4 million in Q4 2022. The company’s attributed its results to Oman’s improving economy as well as its investment and optimisation initiatives after its acquisition of Atlas Bottling Corporation in Q3 2021.
In the diversified financials sector, Al Madina Investment Holding bounced back from a loss of $11.6 million during Q4 2021 to a profit of $ 5.2 million during Q4 2022. Similarly, Dhofar International Development and Investment Holding Company recorded $5.6 million in profits during Q4 2022 as compared to a loss of $4.4 million. However, profit growth in the sector was led by National Finance Co that posted net earnings of $8.6 million up from $7.5 million during Q4 2021. The company attributed the growth in profits to recovery from the pandemic as well as Oman’s overall conductive business environment.