Banking sector forecasts positive performance during 2018

MUSCAT: Commercial banks listed on Muscat Securities Market (MSM) expected the year 2018 to witness a positive performance of the banking sector supported by the improvement of the national economy as the GDP at current prices grew by 10.1 per cent until last September.

In their reports, banks confirmed their optimism for a good performance of the national economy during 2018.

BankMuscat said that the recovery of oil prices, efforts to diversify the economy and improve the investment climate will push the national economy, according to the IMF forecasts, to achieve GDP growth this year of about 7.3 per cent, which is well positioned to keep up with this growth and take advantage of good opportunities under prevailing market conditions.

AhliBank expressed its optimism that the national economy will witness a better performance this year as a result of the government’s efforts to diversify sources of income, tourism and economic promotion and enhancing the Sultanate’s status as an attractive hub for investment activities.

AhliBank described 2017 as being full of challenges on the global level and in our region in particular. “Despite these challenges, the bank has been able to maintain strong performance”.

Bank Sohar believes that banking services are major contributor to the growth of the financial sector and in various economic enhancing the performance national economy.

The financial position of banks in terms of asset quality, coverage of allocations and capital adequacy remains strong.

Bank Sohar pointed out that the fourth quarter of 2017 concluded with good performance supported with initiatives that aimed at creating products that fit customer of the requirements and digitisation of many services it provides, as well as using available resources to meet customer expectations.

HSBC Oman described what it had achieved during the past year as “good progress” in difficult circumstances that enabled it to gain market share in strategic product areas.

Commercial banks’ assets grew by 4.3 per cent to RO 26,057.4 million in 2017.

Commercial banks recorded an increase in their capital by RO 82.5 million at the end of last December to RO 1,272.5 million.

During 2018, banks will seek to raise their capital by distributing bonus shares to shareholders.

The six commercial banks listed on the MSM in 2017 achieved a good performance in terms of net profit of RO 338.3 million compared to RO 345.7 million in 2016.

The banks highlighted their efforts in supporting the national economy and financing many projects in the public and private sectors, as well as small and medium enterprises (SMEs).