Leading Omani banks saw a decline in return on equity (ROE) last year as the pandemic and low oil prices put pressure on government finances. This double whammy caused a 6.4% slump in gross domestic product in 2020.
The country’s financial sector is heavily exposed to the government and its related entities in the oil, transport and services sectors.
The National Bank of Oman saw ROE fall to 3.4% in 2020 from 9.3% in 2019, while Sohar International Bank saw ROE drop to 3.8% from 6.4%, according to The Banker Database.
The country’s largest lender, Bank Muscat, saw ROE dip slightly to 8% last year from 9.3% in 2019. The bank has seen ROE gently decline over the past five years (ROE stood at 11.4% in 2016). However, bucking the downward trend last year was Bank Dhofar, which saw ROE hold steady at 4.4% in 2020 despite the pandemic.
Trends identified using The Banker Database, an online database providing comprehensive financial data and insight for 4000 of the world's leading banks in 190 countries. Contact us.
