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 gross loans and advances increasing by 5.8% to 11.2 billion.

• Fee income surged by 21.2% to 133.9 million, reflecting strong non-interest revenue growth.

• Completed a successful five-year strategy and launched a new three-year PRIME strategy (2026–2028) emphasizing profitability, innovation, and technology investment.

• Capital adequacy ratio improved to 20.4% following a 450 million AT1 capital issuance, with CET1 ratio at 11.7%.

• Continued investment in digital transformation and sustainability, aligning with Oman Vision 2040.

Financial highlights

• Net interest income increased 2.9% year-over-year; cost-to-income ratio improved to 40.6% from 41.6%, now second best in the industry.

• Return on average assets (ROAA) increased to 1.30%, and return on average equity (ROAE) was 8.67%.

• Net impairment charges increased by 2.7% to 37.7 million, reflecting conservative provisioning.

• NPL ratio improved to 4.5%, with provision coverage at 94.8%.

• Fee income contribution to total income reached 31.5%, up from 28.4% year-over-year.

Outlook and guidance

• Management expects NIM improvements for at least the next two quarters, with ongoing discipline in deposit pricing and liquidity management.

• ROE targeted to trend toward 10–11% in the medium term, with a focus on sustainable, double-digit returns.

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

• Continued alignment with Oman Vision 2040 and Net Zero 2050 commitments, with 8% of lending portfolio targeted for renewables.

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