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nbo.om 31st December 2025 Investor Presentation
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Comparative figures have been reclassifiedwhere appropriate to conform to the presentationand accounting policies adopted in the consolidatedfinancialstatements. The informationcontained herein has been prepared by National Bank of Oman SAOG (“NBO”). The informationcontainedin this presentationmay not have been reviewed or reported on by the auditors. NBO relies on informationobtained from sources believedto be reliablebut does not guaranteeits accuracy or completeness. This presentationhas been prepared for informationpurpose only and does not form part of any offer for sale or solicitationof any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitmentwhatsoever. Some of the information in this presentationmay contain projectionsor other forward-looking statements regarding future events or the future financial performanceof NBO. These forward-looking statements include all matters that are not historicalfacts. The inclusion of such forward-looking information shall not be regarded as a representation by NBO or any other person that the objectivesor plans of NBO will be achieved. NBO undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information,future events or otherwise. Please note that roundingdifferencesmay appear throughoutthe presentation. All financialinformationare stated in USD using the conversionrate of 1 USD = 0.385 OMR. Financials are subject to CBO approval. Disclaimer 2
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Contents • Key Messages and Priorities • Operating Environment • National Bank of Oman Introduction • Financial Performance • Appendix
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4 Key Messages • Founded in 1973 and is the oldest bank and the first local bank to complete 50 years. • Long term relationships with prominent companies, Government related entities and individuals. • A well-established senior management team formed between 2020-2021, with significant expertise in banking sector. • The team brings a collective experience of over 100 years in banking. • Following the successful execution of our initial five-year strategy, we are now accelerating into the next phase of our evolution: the Second Surge. • Our current long term strategic road map approved by board in 2025, with the overall objective of increasing market share while increasing profitability metrics. • Robust growth in total operating income driven by solid fee income • Disciplined expense management with optimal cost to income ratios • Maintaining a conservative provisioning aligned with macro economic forecast • On the back of current oil prices, Oman has managed its finances in a prudent manner. • Well established and easy access to stable and significant deposits from Government and Government-related entities. • Significant investment in technology to offer customers efficient digital experience across banking, capital market and investor relations. • Strong shareholder base - Commercial Bank PQSC (CB) and Suhail Bahwan together hold over 49%. • Strong relationship with Government institutions on the back of ownership >30%. Strategy and outlook Strong financial metrics Sound economic metrics Technology and efficient digital offerings Strong and Growing Franchise Experienced management team in place Shareholder Support
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Operating Environment
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6 Economic Diversification Strategy With Fiscal Prudence Oman’s Economic Overview TECHNOLOGICAL MARKET ENVIRONMENTAL Unbanked/Lower Banked CBO mandates financial inclusion for unbanked and lower banked entities and individuals which includes SMEs Public Debt Public Debt increased slightly to USD 37.9 bn by end of 2025 from USD 37.4 bn in 2024. Oil Price Average Brent Crude price YTD Dec-25 reached ~ $65/barrel. Oman’s Rating Outlook Baa3 (Stable) by Moody’s, BBB- (Stable) by S&P, and BBB- (Stable) by Fitch Oman’s Nominal GDP USD 80.7 bn in Q3-25, a growth of 1.5% over Q3-24; 2025 estimated fiscal deficit of USD 1.2 bn. Personal Income Tax Royal Decree was issued to announce the implementation of Personal Tax Income starting 2028 Innovation Innovation Hubs and FinTech accelerators are being heavily looked at by the regulator as part of their innovation roadmap Banking consolidation Further consolidation in the banking sector is expected in future. Government Projects Multiple Government projects to further highlight the importance of Environment such as; Manah Solar project, Hydrogen Duqm project, Dhofar’s Wind farm, etc. Smart Cities Multiple sustainable future city projects announced across Oman, including Sultan Haitham City Green Financing All banks to contribute to the ongoing effort to secure green funds to deploy them in Green Financing products New Regulations Establishment of Oman IFC aimed at diversifying the national economy, strengthening Oman’s position as a global financial hub Special Economic & Free Zones New Royal Decree replacing previous Free Zones law, introducing incentives such as 10-year tax exemption • The Sultanate of Oman is the second largest country by geographical area among the countries of the GCC region, after Saudi Arabia. It is spread over 309,500 km2 and has a 2,092 km coastline. It is strategically placed at the mouth of the Arabian Gulf. • Population of Oman is approximately 5.36 million (Dec 2025), with Omani nationals comprising 3.04 million and expatriates comprising 2.32 million of the overall figure. Population has increased by 1.7% YoY. • Oman’s Real GDP increased by 2.2% YoY in Q3-25. • Government debt as a percentage of GDP has declined to 35.7% at the end of 2025, from 70% in 2020. • Government is expected to record a deficit of USD 1.25 billion for 2025 against a budgeted deficit of USD 1.61 billion • Government has budgeted a deficit of USD 1.38 billion in 2026 with an assumed oil price of USD 60 per barrel. MACRO ECONOMY SOCIOLOGICALOVERVIEW Disability & Elder Person CBO mandates financial inclusion for disabled and elderly, offering them tailored products and branch facilities Maternity Insurance Employers to pay 1% subscription based on full wages with no ceiling ESG Disclosures All companies listed with MSX are mandated to report ESG related metrics from 2025 onwards Open Banking API Open Banking gaining prominence with some banks launching Open Banking APIs Digital Bank Guidelines Final CBO guideline has been released; preparation of Digital as a Business Line is part of the Strategy Biometric Authentication With advanced technology, expectation that regulators will be looking into adding Biometric authentication as part of KYC RegTech Initiatives Higher investments in RegTech anticipated with the rising regulatory mandates & payments landscape transformation
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7 73,875 88,077 111,798 105,758 106,998 80,704 -3.40% 3.10% 4.30% 1.30% 1.67% 2.19% -1.40% 3.80% 1.50% 0.60% 0.70% 1.00%* 2020 2021 2022 2023 2024 Q3-25 Nominal GDP (USD m) Real GDP Growth (%) Inflation Rate (%) Economic Diversification Strategy With Fiscal Prudence Oman’s Economic Overview Geography 309,500 km2, Oman is the second largest country in the GCC region Population 5.4 million (Dec-25, NCSI) Credit Rating Moody’s: Baa3 (Stable); S&P: BBB- (Stable); and Fitch: BBB- (Stable) Nominal GDP USD 80.7 billion (Q3-25, NCSI) GDP per Capita (annualized) USD 20,139 (Q3-25, NCSI) Debt to GDP 35.7% of GDP (2025, KPMG) CHALLENGING MACROECONOMIC CONDITIONS WITH A WELL-DEFINED ECONOMIC DIVERSIFICATION PLAN GDP and Inflation Gross Government debt to GDP (2025 estimates) 7.00% 6.69% 10.60% 8.28% 6.82% 13.71% 13.73% 10.12% Total Petroleum Activities Total non-Petroleum Activities Mining and Quarrying Building and Construction Financial Intermediation Health & Education Hotels and Restaurants Utilities 51% 6% 7% 9%27% Total Petroleum Activities Construction Wholesale & Retail Trade Public Administraion & Defence Other Activities .. with Non-hydrocarbon sectors having commendable growth .. leading to a more diversified economy Nominal GDP CAGR of selected sectors, 2019-2024 Nominal GDP composition 2013 Moody’s: Moody’s Rating agency (Moody’s) has upgraded Oman’s long-term issuer and long- term senior unsecured ratings to Baa3 from Ba1 and changed the outlook to stable from positive. The upgrade reflects that Oman’s government debt metrics will remain robust even if oil prices moderate below our medium-term assumption of US$65/barrel in the coming years. The recent years’ significant reduction in debt burden together with the cumulative impact of spending restraint increase Oman’s resilience to potential future declines in oil demand and prices. S&P: S&P hails Oman’s fiscal discipline, affirms investment-grade rating at BBB- with a stable outlook. The agency attributed the rating to the continued improvement in the sultanate’s public finance performance and growing expenditure-side flexibility, along with ongoing government efforts to reduce public debt and enhance the governance of state-owned enterprises (SOEs). Fitch: Fitch Ratings has upgraded Oman’s long-term foreign-currency issuer default rating from BB+ to BBB– with a stable outlook, elevating the sultanate into investment-grade territory. Fitch said the decision reflects the sustained improvement in Oman’s public finances, stronger external buffers and continued confidence in the government’s prudent fiscal management amid fluctuating oil prices. As per the report, Oman has demonstrated ‘solid fiscal discipline’, cutting public debt to about 36% of GDP in 2025, down sharply from nearly 68% in 2020. 33% 8% 9% 9% 41% Source: Bloomberg & International Monetary Fund (IMF). Source: National Center for Statistical Information (NCSI). *The average inflation in the Sultanate of Oman during 2025 SULTANATE OF OMAN ECONOMIC SNAPSHOT MODERATE DEBT TO GDP LEVELS AS COMPARED TO Ba RATED PEERSPOSITIVE RATING OUTLOOK BY ALL RATING AGENCIES Q3-25 35.10% 53.40% 77.30% 22.40% 146.70% 81.40% 91.40% Oman (Baa3) Armenia (Ba3) South Africa (Ba2) Azerbaijan (Baa3) Greece (Baa3) India (Baa3) Brazil (Ba1)
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8 6.91% 7.93% 8.94% 8.97% 1.14% 1.27% 1.31% 1.35% 2.87% 2.83% 2.75% 2.65% 2022 2023 2024 2025 Return on Equity Return on Assets Net Interest Margin (NIM) The Oman Banking Sector • Aggregate deposits for the banking sector as of Dec-25 showed a YoY growth of 8.5% . Loans for the same period grew by 10.8% YoY. • However, the Omani banking system is fairly concentrated with top four banks (NBO included) accounting for nearly three-fourths of total banking credit and 86% of banking profits. • Banking assets have shown 6.4% CAGR as of Dec-25 over the last 5 years and there has been an improvement in banks’ profitability and asset quality metrics since 2020. • CBO, a conservative but supportive regulator has introduced various regulations to support banks as well as borrowers. • The non-oil economic sectors are experiencing growth in 2025, driven by strategic diversification efforts. Key sectors like agriculture, fisheries, industry, and services are all showing positive trends, contributing to an overall increase in GDP. • Growth in revenue from non-oil economic sector is expected to increase to 3.1% in 2025 as against realised 5.7% in 2024. By end of Q3-2025, Oman's non-oil economic sector saw a 3.5% increase in revenue, reaching OMR 21.41 billion compared to OMR 20.68 billion in the same period last year(2024). USD billion • Fitch Ratings has upgraded the long-term issuer default ratings (IDRs) of five Omani banks – Bank Muscat, Sohar International Bank, National Bank of Oman (NBO), Bank Dhofar and Ahli bank. • Fitch upgraded Bank Muscat’s long-term IDR to BBB- from BB+, while the long-term IDRs of Sohar International, NBO, Bank Dhofar and Ahli bank were raised to BB+ from BB. The outlook on all five banks is stable. • Fitch added that business conditions remain favourable for Omani banks, supported by high, though moderating, oil prices. The agency said the authorities’ commitment to economic diversification under Vision 2040 should create further growth opportunities for banks. It also highlighted the authorities’ strong propensity to support the banking system, given the sector’s systemic importance and high contagion risk. • The upgrades follow Fitch’s recent upgrade of Oman’s sovereign credit rating to investment-grade BBB- ,driven by sustained improvements in the country’s public and external balance sheets and greater confidence that Oman will maintain prudent policies in a lower oil price environment. 89.7 96.6 103.0 114.3 67.4 70.2 75.0 83.1 4.47% 4.51% 4.45% 4.33% 2022 2023 2024 2025 Assets Loans NPL ratio OVERVIEW BANKING SECTORS’ ASSETS AND LOANS RATING OUTLOOK– BANKING SECTOR KEY RATIOS OF BANKING SECTOR Source: Published FS of seven listed Omani banks including NBO. Financials are subject to CBO approval. 45.22% 44.07% 42.82% 42.42%
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9 Sustainability Development - Oman • Development of social, economic and environmental aspects of society has been a national objective since the launch of Oman’s 2040 Vision towards sustainability. • Oman’s geographical position and biodiversity provides favorable conditions and significant protentional for green and circular growth. • CBO has issued a circular in October 2024 on “Promoting Sustainable and Green Financial Practices” providing regulatory requirements related to climate risk management, covering governance, strategy, risk management and disclosures. • Going forward in 2025 and 2026, banks are to launch green products, improve their sustainability practices and allocate 8% of their lending portfolio to renewable energy. • The Bank is expected to align with Oman Vision 2040 and Net Zero commitments by 2050 as well as Oman Sustainable Finance framework from Ministry Of Finance. • MSX mandated all listed companies to report on their ESG performance by 2025 Q1, in compliance with the GCC ESG Disclosure Metrics for listed companies. • Projected green and social government expenditure for 2040 will further support these initiatives. OVERVIEW Net Zero 2050 Targets: • GHG Emissions reduction of 21% by 2030, 54% by 2040, 92% by 2050 – Last 8% gap to be bridged by leveraging Decarbonization Technologies • Generate 20% of electricity from Renewable Sources by 2027 Oman Vision 2040 Pillars: • People & Society • Economy & Development • Governance & Institutional Performance • Sustainable Environment • Building Hydrogen-Centric Economy Key Objective under MOF Strategy: • Issue Sustainable Financial Instruments (Green, Social and Sustainability bonds, Loans or Sukuk) for investment in projects that deliver environmental and social benefits • SEZAD (Special Economic Zone At Duqm) will play an important role in developing Green projects i.e. Green hydrogen & Green ammonia) which will be supplied by wind/solar electricity. • Oman’s first sustainable cities are being developed (Sultan Haitham Smart City, & Yiti Sustainable City) NET ZERO COMMITMENTS 2050 OMAN VISION 2040 OMAN SUSTAINABLE FINANCE - MOF Source: Oman Vision 2040 Gov., Ministry of Finance Gov and Central Bank of Oman.
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National Bank of Oman Overview
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11 The First Omani Commercial Bank • National Bank of Oman SAOG (“NBO” or the “Bank”) was the first incorporated Bank in the Sultanate of Oman (“Oman”) - established in 1973 as a joint stock company, providing conventional and Islamic banking services. • The Bank’s shares are listed on the Muscat Stock Exchange (“MSX”). • With total assets of USD 14.5 billion as of 31st December 2025, the Bank is considered as one of the largest banks in Oman and employed 1,454 employees. • As of 31st December 2025, the Bank serves approximately half a million retail customers and 30,000 corporate and SME customers via 68 branches and 241 ATM and CCDM units. • The Bank has two overseas branches in the UAE (Dubai and Abu Dhabi) and is in process of legal closure of its presence in Egypt. • The Bank operates via four main segments namely, Retail banking, Wholesale banking, International banking and Islamic banking. • As of 30th September 2025, the Bank’s market share was approximately 12.7% of loans and 12.3% of deposits. Rating Agency Period Long-term Rating Outlook July 2025 Baa3 Stable December 2025 BB+ Positive CREDIT RATING KEY FINANCIALS USD Millions 2022 2023 2024 2025 Total Assets 11,153 12,525 13,617 14,523 Net Loans 8,742 9,108 10,198 10,780 Deposits 7,966 9,376 10,723 10,413 Operating Income 359 379 393 425 Net Profit 125 151 164 182 Tier 1* 16.3% 16.3% 16.7% 20.1% Total CAR* 16.9% 16.9% 17.1% 20.4% Loans to Deposit Ratio 109.7% 97.1% 95.1% 103.5% NPL Ratio 4.9% 4.5% 4.7% 4.5% Cost/Income 43.8% 42.4% 41.6% 40.6% OVERVIEW OWNERSHIP (as of 30th Dec 2025) The Commercial Bank of Qatar 34.90% Suhail Salim Abdullah Al Mukhaini Bahwan 14.75% Others (holding below 10%) 50.35% Financials are subject to CBO approval. * Capital ratios in 2025 reflect the issuance of USD 450 million Additional Tier 1 capital in November 2025
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12 Drive balanced growth through optimized asset- liability mix, enhanced risk appetite for identified focus segments, green funding, cost efficiencies, and long-term ROE enhancement Strengthen Customer Relationships through segmentation, loyalty strategies, cross-sell, and tailored value propositions Accelerate digital transformation, launch differentiated innovative products, and embed agility into core business processes to drive operational efficiencies Build a future- ready workforce by upskilling talent, enhancing leadership, and closing critical capability gaps Strengthen NBO’s ecosystem by leveraging API-led partnerships & fintech collaborations, resolve tech/data challenges and enhance platform capabilities P Profitable & Sustainable Growth R Relationship Centric Business I Innovation Culture & Agile Operating Model M Market-ready Capabilities E Ecosystem & Tech Enablement “PRIME” 2026-2028 – Empowering the Journey Ahead A strategy designed to unlock opportunities, drive impact, and shape the bank we want to become
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Financial Performance
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14 Key Financial Highlights - 2025 Net Profit for the year 2025 was USD 182.4 million, an increase of 11.3 per cent over the corresponding period in the previous year. Gross Loans and Advances as of 31st December 2025 are at USD 11.2 billion, grown by 5.8 percent over same period last year. Total Assets as of 31st December 2025 was USD 14.5 billion, increased by 6.7 per cent compared to last year. Pursuant to the Additional Tier 1 Capital issuance of USD 450 million in November 25, the bank’s total capital adequacy ratio stood at 20.4 per cent as of 31st December 2025. Net Interest Income for the year 2025 was USD 290.8 million, an increase of 2.9 per cent over the corresponding period in the previous year. Fee Income for the year 2025 grew strongly by 21.2 per cent from USD 110.5 million to USD 133.9 million the corresponding period last year. Net Impairment for the year 2025 was USD 37.7 million, compared to USD 36.7 million for the corresponding period last year, increased by 2.7 per cent. Financials are subject to CBO approval.
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15 NBO - Operating Performance • Net interest income for the year 2025 increased by 2.9% YOY, supported by healthy growth in interest-bearing assets. • Cost-to-income ratio for the year 2025 improved to 40.6% from 41.6% for the corresponding period last year, reflecting robust control over operating expenses while the bank continues to invest in people and technology. • Among the return metrics; ROAA for the year 2025 stood at 1.30%, up by 5 bps YOY from 1.24% in 2024. ROAE for the year 2025 stood at 8.67% compared to 8.98% in 2024. • Net impairment for the year 2025 increased by 2.7% to USD 37.7 mn from USD 36.7 mn in 2024. The variance reflects bank’s conservative provisioning aligning with macro economic environment. . USD million Other Operating Expenses Net Interest Income Other Operating Income Staff Costs USD million 90.1 95.4 91.8 99.3 110.5 102.3 133.9 105.2 268.9 61.8 287.1 61.6 282.6 61.3 290.8 67.3 359.1 157.2 378.9 160.8 393.1 163.6 172.5 2022 2023 2024 2025Axis Title 52.6 40.8 36.7 37.7 2022 2023 2024 2025 8.2% 8.8% 8.9% 8.7% 1.1% 1.3% 1.2% 1.3% 2.8% 2.7% 2.4% 2.3% 43.8% 42.4% 41.6% 40.6% 2022 2023 2024 2025 ROE ROA NIM Cost to Income OVERVIEW KEY PROFITABILITY METRICS OPERATING INCOME COMPOSITION NET IMPAIRMENT Financials are subject to CBO approval.
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16 79.8% 74.9% 81.7% 82.0% 15.3% 20.6% 13.6% 13.5%4.9% 4.5% 4.7% 4.5% 9,154 9,518 10,625 11,240 2022 2023 2024 2025 Stage 1 Stage 2 Stage 3 Loans Asset Quality • During the year 2025, the loan book grew by 5.7% compared to last year, reflecting continued portfolio expansion and conservative approach to risk management. • The Bank has a diversified portfolio of loans/financing activities across several economic sectors. • With the continuous build-up of Stage 1-2-3 provisions, total provision as a percentage of loans stands at 4.3% in 2025. As a result, provision coverage ratio improved to 94.8% in 2025 from 88.9% in 2024. • NPL ratio improved marginally to 4.5% in 2025 compared to 4.7% in 2024. • Stage 2 as a percentage of Loans has come down from 13.6% in 2024 to 13.5% in 2025. USD million USD million 1.6% 1.7% 1.1% 1.1% 3.4% 2.9% 3.0% 3.2% 5.0% 4.6% 4.1% 4.3% 2022 2023 2024 2025 Coll/Stage 1-2 Specific / Stage 3 Total 420 423 440 480450 425 495 506 93.4% 99.5% 88.9% 94.8% 2022 2023 2024 2025 ECL NPL NPL Coverage OVERVIEW GROSS LOAN EXPOSURE BY STAGES GROSS LOANS – SECTOR BREAKUP (2025) IMPAIRED ASSETS AND PROVISIONING PROVISION HELD AS A % OF LOANS Financials are subject to CBO approval. 38% 10% 6%5% 2% 5% 8% 3% 7% 4% 2%0.3% 5% 0.2% Personal Financial institutions Service Manufacturing Wholesale and retail trade Construction Electricity, gas and water Others Transport and communication Mining & Quarring Import trade Agriculture Government Export Trade
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17 11.9% 12.1% 11.5% 11.7% 4.4% 4.2% 5.2% 8.4%0.6% 0.6% 0.4% 0.3% 2022 2023 2024 2025 CET 1 Tier 1 Tier 2 Current and Call Accounts 34.6% Savings Accounts 15.3% Term Deposits 50.1% Capitalization, Funding and Liquidity • Stable funding has complemented the bank's deposit base, resulting in a stronger Net Stable Funding Ratio of 130.3% in 2025. • Strong liquidity with liquid asset ratio representing 22.7% of total assets and a high liquidity coverage ratio of 159.8% in 2025. • Capitalization levels of 20.4% as of 2025 (excluding proposed dividends) vs. minimum total capital adequacy ratio of 13.5% (Central Bank of Oman guidelines) leaves a capital buffer of over 6.9%. • The Bank’s CET1 ratio is 11.7%, which is well above the regulatory minimum of 9.5% with a buffer of 2.2%. USD million 49.9% CAR 7,966 9,376 10,723 10,413 1,180 1,076 501 1,078 1,665 1,752 1,995 2,597 10,811 12,204 13,220 14,088 2022 2023 2024 2025 Deposits FI Borrowings Capital 679 1,051 786 925 311 844 967 869 1,062 1,199 1,230 1,508 18.4% 24.7% 21.9% 22.7% 2022 2023 2024 2025 Cash & cash equivalent Banks and money market placements Financial investments Liquid asset ratio OVERVIEW FUNDING MIX LIQUID ASSETS CAPITALIZATION USD million 16.9% 16.9% 17.1% 20.4% Min CAR 13.5% Financials are subject to CBO approval.
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Appendix
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19 Balance Sheet Amount in USD Millions 2022 2023 2024 2025 ASSETS Cash & Central Bank 679 1,051 786 925 Due From Banks 311 844 967 869 Loans & Advances (Net) 8,742 9,108 10,198 10,780 Investments 1,062 1,199 1,230 1,508 Fixed Assets 148 145 282 283 Other Assets 211 178 154 158 Total Assets 11,153 12,525 13,617 14,523 LIABILITIES Customer Deposits 7,966 9,376 10,723 10,413 Due To Banks 681 1,076 501 1,078 Euro Medium Term Notes 499 - - - Other Liabilities 343 321 397 434 Total Liabilities 9,489 10,773 11,621 11,925 SHAREHOLDERS EQUITY Share Capital 422 422 422 422 Share Premium Reserve 90 90 90 90 Legal and Other Reserves 157 161 170 195 Retained Earnings 561 645 729 856 Net Worth (A) 1,230 1,318 1,411 1,563 Tier 1 Capital (B) 434 434 585 1,035 Net Worth (C=A+B) 1,665 1,752 1,996 2,598 Total Net worth and Liabilities 11,153 12,525 13,617 14,523 Financials are subject to CBO approval.
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20 Income Statement Amounts in USD Millions For the year ended Details 31 Dec 2022 31 Dec 2023 31 Dec 2024 31 Dec 2025 - Interest Income-Conventional 475.7 587.9 651.1 640.3 - Interest Income-Islamic 28.2 42.0 55.5 67.5 Total Interest Income 503.9 629.9 706.6 707.8 - Interest Expenses-Conventional (221.1) (316.6) (385.0) (371.1) - Interest Expenses-Islamic (13.9) (26.2) (39.0) (45.9) Total Interest Expenses (235.0) (342.8) (424.0) (417.0) Net Interest Income 268.9 287.1 282.6 290.8 Non funded Income 90.1 91.8 110.5 133.9 Total Income 359.1 378.9 393.1 424.7 - Staff Costs (95.4) (99.3) (102.3) (105.2) - Other Operating Costs (46.6) (45.7) (44.9) (50.3) - Depreciation (15.2) (15.8) (16.4) (17.0) Total Operating Expenditure (157.2) (160.8) (163.6) (172.5) Operating Profit 201.9 218.1 229.5 252.2 - Gross Provisions (68.9) (62.2) (59.8) (63.1) - Recovery 16.3 21.4 23.1 25.4 Net Loan Impairment (52.6) (40.8) (36.7) (37.7) Net Profit Before Tax 149.3 177.3 192.8 214.5 Taxation (24.1) (26.6) (28.9) (32.1) Net Profit for the period 125.2 150.7 163.9 182.4 Financials are subject to CBO approval.
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21 Integrating ESG into Our Strategic Priorities ENVIRNMENTAL STEWARDSHIP SUSTAINABLE FINANCE FOCUS SOCIAL VALUE CREATION GOVERNANCE EXCELLENCE • Climate Risk Management • Operational Eco-Efficiency • Supply Chain & Operational Digitization Expected Outcomes: ➢ Reduced climate risk exposure ➢ Minimized environmental footprint ➢ Enhanced operational and digital efficiency • Financial Inclusion & Accessibility • Diversity & Human Capital Development • Community Impact and Partnerships Expected outcomes: ➢ Expanded financial access ➢ Enhanced employee engagement ➢ Strengthened community impact ➢ Improved customer trust • Sectoral Lending Strategy • Innovative Financial Products • Sustainable Finance Capabilities Development Expected Outcomes: ➢ Market participation in sustainable finance ➢ Strengthening green assets ➢ Innovative product offerings ➢ Enhanced client value proposition • ESG Governance Structure • ESG Risk Management Integration • ESG Data, Reporting and Disclosure Expected outcomes: ➢ Enhanced oversight ➢ Improved ESG risk management ➢ Strengthened ethics culture ➢ Increased transparency and trust
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22 Overview NBO - ESG Initiatives STRATEGIC COLLABORATIONS • Partnerships Aligned with Oman Vision 2040: Engaged in government-led initiatives supporting the UN Sustainable Development Goals (SDGs) and Global Reporting Initiative (GRI) standards. Key Projects financed: • Desalination plants with reverse osmosis technology. • Oman-UAE railway network for enhanced energy efficiency. • Projects supporting sustainable housing ENVIRONMENTAL COMMITMENT • Reducing Footprint: Leveraging digital banking to minimize paper use and enhance operational efficiency. • Sustainable Infrastructure: NBO's headquarters designed with eco-friendly features, including energy-efficient systems and local materials. SOCIAL RESPONSIBILITY • Diversity & Inclusion: Achieved a 93% Omanisation rate; committed to gender balance and opportunities for individuals with disabilities. • Community Impact: Invested OMR 200,000 in CSR initiatives, including support for health, education, and fintech innovation through the NBO Fintech Accelerator Programme. GOVERNANCE & RISK MANAGEMENT • Ethical Practices: Strong corporate governance and transparency aligned with UN ESG goals. • Climate Risk Management: Proactively assessing and managing climate-related risks within the lending portfolio. FUTURE FOCUS • Sustainable Finance Framework: Facilitating the transition to a low- carbon economy through green financing and advisory services. • Digital Transformation: Expanding digital banking services to promote sustainability and reduce resource consumption.
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23 Muzn Islamic Banking OTHER FEE INCOME NET INCOME FROM ISLAMIC FINANCING & INVESTMENTS OPERATING INCOME OVERVIEW NET ISLAMIC FINANCING EXPOSURETOTAL ASSETS • Muzn Islamic Banking is the first licensed Islamic Banking Window operating in Oman since 2013 offering Shari'a compliant financial solutions for both retail and corporate customers. • As of Dec 2025, Muzn Islamic Banking operates 8 branches throughout Oman, enhancing accessibility for our growing customer base. • Muzn assets have demonstrated a remarkable 31.1% CAGR as of Dec 2025 over the past three years and with net Islamic financing growing at 28.7%. • For the year 2025, Muzn total operating income increased by 18.3% to USD 28.5 mn from USD 21.7 mn compared to last year. USD million USD million USD million USD million USD million Source: NBO FS, segment reporting. Financials are subject to CBO approval. 590 992 1,382 1,329 20 520 1,020 1,520 2022 2023 2024 2025 478 706 915 1,018 20 220 420 620 820 1,020 1,220 2022 2023 2024 2025 2.9 2.4 5.3 6.9 - 2.0 4.0 6.0 8.0 2022 2023 2024 2025 14.3 15.8 16.5 21.6 - 5.0 10.0 15.0 20.0 25.0 2022 2023 2024 2025 17.2 18.2 21.7 28.5 - 10.0 20.0 30.0 2022 2023 2024 2025
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nbo.om Thank you