Omani companies, which are listed on the Muscat Stock Exchange (MSX), reported total net profits of $1.39bn for the year 2021, 3.7 percent less than the $1.44bn in 2020.
The decline was due to a fall in net profits of four out of the top five sectors at the MSX, according to a research report released by Kuwait-based Kamco Investment Company.
As per the report, Oman’s banking sector, the biggest sector in the exchange by market capitalization, offset some of the net profit declines of other main sectors.
The banking sector recorded a 28.2 per cent growth in total net profits at $861.9mn in 2021 compared to $672.5mn net profits posted in the previous year.
Full-year 2021 net profits for Bank Muscat, the biggest lender by assets in the MSX, rose 16 per cent to reach $492.5mn driven mainly higher operating income and lower impairment charges.
Moreover, National Bank of Oman reported 66.8 per cent growth in 2021 net profit which reached US$78.6mn.
Strong fee income and a decrease in net impairment combined with gross loans increase were the main drivers of NBO’s performance, Kamco Investment noted in its report.
On the other hand, the sultanate’s telecom sector registered a 9.8 per cent year-on-year decline in 2021 with aggregate earnings falling to $207.2mn, according to Kamco Investment.
The diversified financials sector also witnessed a 44 per cent drop in aggregate net profits which decreased to $117.7mn in 2021, the report added.
GCC corporate earnings soar
Total net profits of the publicly listed companies in the GCC soared to record high in 2021, mainly due to higher growths reported by energy, materials and banking sector companies.
Earnings reported by the GCC region’s listed companies jumped to a record high of $196.5bn in 2021 as compared to $93.1bn during 2020, Kamco Investment said.