MUSCAT, APRIL 16
The Omani banking sector is off to a positive start in 2024, according to a report by Vision Capital detailing a rise in key financial metrics across the sector for the first quarter.
The total income for Omani banks grew by 4.8% to reach RO 338 million in Q1 2024, up from RO 325 million a year earlier. This positive trend comes alongside a slight increase in operating expenses of 2.0%, reaching RO 146 million in Q1 2024, up from RO 143 million a year earlier.
Despite the expense increase, operating profit for Omani banks rose by a significant 5.8% to reach RO 192 million, up from RO 182 million in Q1 2023. Year-on-year, net provisions remained flat at 0.9%, reaching RO 44 million in Q1 of this year.
The strong performance translates to a net profit increase of 6.1% to RO 125 million in Q1 2024, up from RO 117 million a year ealier. This growth is further supported by an expansion in lending activity, with net loans growing 3.0% year-on-year, reaching RO 28.6 billion. Customer deposits also saw a significant rise, growing by an impressive 11.9% year-on-year, reaching RO 29.7 billion.
The Vision Capital report paints a picture of a healthy Omani banking sector in the first quarter of 2024. Growth across income, profitability, lending, and deposits suggests a positive outlook for the industry.
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