Slides
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nbo.om 30th June 2026 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. 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 120 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 new 3-years strategic road map 2026- 2028 approved by Board in 2025, covers 5 key strategic themes “PRIME” (Profitable & Sustainable Growth, Relationship Centric Business, Innovation Culture & Agile Processes, Market Ready Capabilities, and Ecosystem & Tech-Enablement). • Robust growth in total operating income driven by solid net interest income and fee income. • Disciplined expense management with optimal cost to income ratios. • Maintaining a conservative provisioning aligned with macro economic forecast. • Oman has managed its finances in a prudent manner. It is also helped by current oil prices. • 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 Salim Abdullah Al Mukhaini Bahwan together hold 49.6%. • 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 35.80%* 47.30% 78.90% 20.10 146.10% 81.92% 78.64% Oman (Baa3) Armenia (Ba3) South Africa (Ba2) Azerbaijan (Baa3) Greece (Baa3) India (Baa3) Brazil (Ba1) 33,910 43,042 40,717 41,194 42,143 10,293 3.10% 4.30% 1.30% 1.67% 2.40% 2.58% 3.80% 1.50% 0.60% 0.70% 1.60% 2.80% 2021 2022 2023 2024 2025 2026 Nominal GDP (OMR 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 5.40 million (Jun-26, NCSI) Credit Rating Moody’s: Baa3 (Stable); S&P: BBB- (Stable); and Fitch: BBB- (Stable) Nominal GDP 10.29 billion (Q1-26, NCSI) GDP per Capita (annualized) 7,732 (Q1-26, NCSI) Debt to GDP 35.8% of GDP (2025, NCSI) CHALLENGING MACROECONOMIC CONDITIONS WITH A WELL-DEFINED ECONOMIC DIVERSIFICATION PLAN GDP and Inflation Gross Government debt to GDP (2025) 12.86% 9.72% 9.79% 13.27% 9.52% 13.15% 28.41% 74.29% 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, 2020-2025 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 the group’s expectation 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 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. 31% 7% 8% 10% 44% Source: Bloomberg & International Monetary Fund (IMF). * estimate Source: National Center for Statistical Information (NCSI). *The average inflation in the Sultanate of Oman during January to June 2026 SULTANATE OF OMAN ECONOMIC SNAPSHOT MODERATE DEBT TO GDP LEVELS AS COMPARED TO Baa3 RATED PEERSPOSITIVE RATING OUTLOOK BY ALL RATING AGENCIES Q1-26 *
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7 38.8 41.5 41.5 37.9 43.0 28.4 30.4 29.9 27.8 31.5 4.51% 4.45% 4.18% 4.26% 4.21% 3.50% 3.70% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 2023 2024 2025 Q1-25 Q1-26 Assets Loans NPL ratio The Oman Banking Sector billion OVERVIEW BANKING SECTORS’ ASSETS AND LOANS RATING OUTLOOK– BANKING SECTOR KEY RATIOS OF BANKING SECTOR Source: Published FS of listed Omani banks including NBO. 7.88% 8.86% 9.22% 8.92% 8.88% 1.26% 1.30% 1.39% 1.33% 1.34% 2.83% 2.75% 2.64% 2.70% 2.64% 2023 2024 2025 Q1-25 Q1-26 Return on Equity Return on Assets Net Interest Margin (NIM) 44.32% 43.11% 41.53% 42.45% 42.50% • Aggregate deposits for the banking sector as of Mar-26 reflect a YoY growth of 11.6%. Loans for the same period grew by 13.5% 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 nearly 90% of banking profits as of Mar- 26. • Banking assets have experienced CAGR of 6.4% in 2025 over last 5 years. This growth has been bolstered by prudent regulatory oversight and a consistent demand for credit. • 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 2026, 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 increased 5.9% to 7.462 bln in Q1, 2026 compared to 7.045 bln in Q1, 2025. Oman’s total non-hydrocarbon revenue for the full year of 2025 reached approximately 3.641 bln, exceeding initial budget estimates by 2%. • 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.
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8 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 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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9 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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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 6.2 billion as of 30th June 2026, the Bank is considered as one of the largest banks in Oman and employs 1,409 employees. • As of 30th June 2026, the Bank serves approximately 760,000 retail customers and 31,000 corporate and SME customers via 68 branches and 237 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 31st March 2026, the Bank’s market share was approximately 13.6% of loans and 13.5% of deposits. Rating Agency Period Long-term Rating Outlook June 2026 Baa3 Stable June 2026 BBB- Stable CREDIT RATING KEY FINANCIALS OVERVIEW OWNERSHIP (as of 30th June 2026) The Commercial Bank of Qatar 34.90% Suhail Salim Abdullah Al Mukhaini Bahwan 14.75% Others (holding below 10%) 50.35% * Capital ratios in 2025 reflect the issuance of 173 million Additional Tier 1 capital in November 2025. AT1 of 115.5 million issued in April 2021 redeemed on first call date in April 2026. Millions 2023 2024 2025 Q2-25 Q2-26 Total Assets 4,822 5,243 5,591 5,500 6,218 Net Loans 3,507 3,926 4,150 4,068 4,444 Deposits 3,610 4,129 4,009 4,205 4,594 Operating Income 146 151 163 79 91 Net Profit 58 63 70 34 39 Tier 1 16.3% 16.7% 20.1% 16.1% 17.0% Total CAR* 16.9% 17.1% 20.4% 16.6% 17.5% Loans to Deposit Ratio 97.1% 95.1% 103.5% 96.7% 96.7% NPL Ratio 4.5% 4.7% 4.5% 4.6% 4.4% Cost/Income 42.4% 41.6% 40.6% 40.8% 39.1%
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Financial Performance
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13 H1 2026 Key Financial Highlights Net Profit for H1-26 was 39.1 million, an increase of 14.9 per cent over the corresponding period in the previous year. Gross Loans and Advances as of 30th June 2026 are at 4.6 billion, grown by 9.3 percent over same period last year. Total Assets as of 30th June 2026 was 6.2 billion, increased by 13.1 per cent compared to last year. The bank’s total capital adequacy ratio stood at 17.5 per cent as of 30th June 2026 Net Interest Income for H1-26 was 59.6 million, an increase of 11.7 per cent over the corresponding period in the previous year. Fee Income for H1-26 grew strongly by 20.0 per cent, increasing to 31.3 million from 26.1 million in the corresponding period in the previous year. Net Impairment for H1-26 was 9.8 million, compared to 7.1 million for the corresponding period last year, increased by 38.3 per cent.
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14 NBO - Operating Performance • Net interest income for H1-26 increased by 11.7% compared to the previous year, supported by healthy growth in interest-bearing assets. • Cost-to-income ratio for H1-26 improved to 39.1% from 40.8% 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; ROA for H1-26 stood at 1.36%, up by 7 bps as compared to 1.29% in H1-25. ROE for H1-26 stood at 8.73% compared to 8.88% in H1-25. • Net impairment for H1-26 increased by 38.3 % to 9.8 mn from 7.1 mn in H1-25. The variance reflects bank’s conservative provisioning aligning with macro economic environment. million Other Operating Expenses Net Interest Income Other Operating Income Staff Costs million 35.3 38.2 42.5 39.4 51.6 40.5 26.1 20.4 31.3 21.3 110.5 23.7 108.8 23.6 111.9 25.9 53.3 12.0 59.6 14.3 145.9 61.9 151.3 63.0 163.5 66.4 79.4 32.4 90.9 35.5 2023 2024 2025 H1-25 H1-26 15.7 14.1 14.5 7.1 9.8 2023 2024 2025 H1-25 H1-26 8.8% 8.9% 8.7% 8.9% 8.7% 1.3% 1.2% 1.3% 1.3% 1.4% 2.7% 2.4% 2.3% 2.3% 2.3% 42.4% 41.6% 40.6% 40.8% 39.1% 2023 2024 2025 H1-25 H1-26 ROE ROA NIM Cost to Income OVERVIEW KEY PROFITABILITY METRICS OPERATING INCOME COMPOSITION NET IMPAIRMENT
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15 74.9% 81.7% 82.0% 81.9% 85.7% 20.6% 13.6% 13.5% 13.5% 9.9%4.5% 4.7% 4.5% 4.6% 4.4% 3,664 4,091 4,327 4,240 4,633 2023 2024 2025 Q2-25 Q2-26 Stage 1 Stage 2 Stage 3 Loans Asset Quality • During the first six months of 2026, the loan book grew by 7.1% and on a YOY basis, it has grown by 9.3%. • 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 4.2% in H1-26. • NPL ratio declined by 20 bps to 4.4% in H1-26 compared to 4.6% in H1-25. • Stage 2 as a percentage of Loans has come down from 13.5% in H1-25 to 9.9% in H1-26 million million 1.7% 1.1% 1.1% 1.2% 1.1% 2.9% 3.0% 3.2% 3.0% 3.1% 4.6% 4.1% 4.3% 4.2% 4.2% 2023 2024 2025 Jun-25 Jun-26 Coll/Stage 1-2 Specific / Stage 3 Total 163 169 185 178 197163 191 195 195 203 99.5% 88.9% 94.8% 91.7% 97.1% 2023 2024 2025 Jun-25 Jun-26 0 50 100 150 200 250 300 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 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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16 12.1% 11.5% 11.7% 11.1% 11.2% 4.2% 5.2% 8.4% 5.0% 5.8% 0.6% 0.4% 0.3% 0.5% 0.5% 2023 2024 2025 Jun-25 Jun-26 CET 1 Tier 1 Tier 2 Current and Call Accounts 38.8% Savings Accounts 15.3% Term Deposits 45.9% Capitalization, Funding and Liquidity • Stable funding has complemented the bank's deposit base, resulting in a stronger Net Stable Funding Ratio of 127.40% in H1-26. • Strong liquidity with liquid asset ratio representing 25% of total assets and a high liquidity coverage ratio of 187.26% in H1-26. • Capitalization levels of 17.5% as of H1-26 (excluding interim profits) vs. minimum total capital adequacy ratio of 13.5% (Central Bank of Oman guidelines) leaves a capital buffer of over 4.0%. • The Bank’s CET1 ratio is 11.2%, which is well above the regulatory minimum of 9.5% with a buffer of 1.7%. million 54.1% CAR 3,610 4,129 4,009 4,205 4,594 414 193 415 330 491 675 768 1,000 785 906 4,699 5,090 5,424 5,320 5,992 2023 2024 2025 Jun-25 Jun-26 Deposits FI Borrowings Capital 404 303 356 285 317 325 372 334 367 532 462 473 580 594 704 24.7% 21.9% 22.7% 22.6% 25.0% 2023 2024 2025 Jun-25 Jun-26 Cash & cash equivalent Banks and money market placements Financial investments Liquid asset ratio OVERVIEW FUNDING MIX LIQUID ASSETS CAPITALIZATION million 17.1% 20.4% 16.6% 17.5% Min CAR 16.9%
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Appendix
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18 Balance Sheet Amount in Millions 2023 2024 2025 Jun-25 Jun-26 ASSETS Cash & Central Bank 404 303 356 285 317 Due From Banks 325 372 334 367 532 Loans & Advances (Net) 3,507 3,926 4,150 4,068 4,444 Investments 462 473 580 594 704 Fixed Assets 56 109 109 127 160 Other Assets 68 60 62 59 61 Total Assets 4,822 5,243 5,591 5,500 6,218 LIABILITIES Customer Deposits 3,610 4,129 4,009 4,205 4,594 Due To Banks 414 501 415 330 491 Euro Medium Term Notes - - - - - Other Liabilities 124 153 167 179 226 Total Liabilities 4,148 4,475 4,591 4,714 5,311 SHAREHOLDERS EQUITY Share Capital 163 163 163 163 163 Share Premium Reserve 34 34 34 34 34 Legal and Other Reserves 62 66 75 74 90 Retained Earnings 248 280 330 290 337 Net Worth (A) 507 543 602 561 624 Tier 1 Capital (B) 167 225 398 225 283 Net Worth (C=A+B) 674 768 1,000 786 907 Total Net worth and Liabilities 4,822 5,243 5,591 5,500 6,218
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19 Income Statement Amounts in Millions For the year ended For the period ended Details 31 Dec 2023 31 Dec 2024 31 Dec 2025 30-Jun-25 30-Jun-26 - Interest Income-Conventional 226.4 250.6 246.5 120.9 124.1 - Interest Income-Islamic 16.1 21.4 26.0 12.4 13.7 Total Interest Income 242.5 272.0 272.5 133.3 137.8 - Interest Expenses-Conventional (121.9) (148.2) (142.9) (71.4) (69.4) - Interest Expenses-Islamic (10.1) (15.0) (17.7) (8.6) (8.8) Total Interest Expenses (132.0) (163.2) (160.6) (80.0) (78.2) Net Interest Income 110.5 108.8 111.9 53.3 59.6 Non funded Income 35.3 42.5 51.6 26.1 31.3 Total Income 145.8 151.3 163.5 79.4 90.9 - Staff Costs (38.2) (39.4) (40.5) (20.4) (21.3) - Other Operating Costs (17.6) (17.3) (19.4) (8.8) (10.8) - Depreciation (6.1) (6.3) (6.5) (3.2) (3.5) Total Operating Expenditure (61.9) (63.0) (66.4) (32.4) (35.6) Operating Profit 83.9 88.3 97.1 47.0 55.3 - Gross Provisions (23.9) (23.0) (24.3) (12.0) (13.7) - Recovery 8.2 8.9 9.8 4.9 3.9 Net Loan Impairment (15.7) (14.1) (14.5) (7.1) (9.8) Net Profit Before Tax 68.2 74.2 82.6 39.9 45.5 Taxation (10.2) (11.1) (12.4) (5.9) (6.4) Net Profit for the period 58.0 63.1 70.2 34.0 39.1 EPS 0.028 0.031 0.033 0.016 0.015
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20 Integrating ESG into Our Strategic Priorities ENVIRONMENTAL 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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21 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 200,000 in CSR initiatives, including support for health, education, and fintech innovation through the NBO Fintech Accelerator Program. 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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22 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 June 2026, Muzn Islamic Banking operates 8 branches throughout Oman, enhancing accessibility for our growing customer base. • Muzn assets have demonstrated a remarkable 13.2% CAGR as of June 2026 over the past three years, with net Islamic financing growing at 15.4%. • Muzn total operating income increased by 16.7% to 6.1 mn in H1-26 from 5.2 mn in H1-25. million million million million million Source: NBO FS, segment reporting. 7.0 8.4 11.0 5.2 6.1 - 2.0 4.0 6.0 8.0 10.0 12.0 2023 2024 2025 Jun-25 Jun-26 6.1 6.3 8.3 3.8 4.9 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2023 2024 2025 Jun-25 Jun-26 0.9 2.0 2.7 1.4 1.2 - 0.5 1.0 1.5 2.0 2.5 3.0 2023 2024 2025 Jun-25 Jun-26 272 352 392 384 389 20 70 120 170 220 270 320 370 420 2023 2024 2025 Jun-25 Jun-26 382 532 511 539 521 20 120 220 320 420 520 620 2023 2024 2025 Jun-25 Jun-26
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23 Economic Diversification Strategy With Fiscal Prudence Oman’s Economic Overview TECHNOLOGICAL MARKET ENVIRONMENTAL Maternity Insurance Unpaid leave up to 1 year can be availed as part of the maternity leave Inflation Inflation has risen to 2.8% in Jun’26, down sharply from 3.8% in May’26 & 3.2% in Apr’26 Oil Price Downward trend due to ease of geo-political issues from May’26 price of ~ 34.35 to ~ 28.27 in Jun’26 end Oman’s Rating Outlook Baa3 (Stable) by Moody’s, BBB- (Stable) by S&P, and BBB- (Stable) by Fitch Oman’s Real GDP 9.69 bn in Q1-26, a growth of 2.6% over Q1-25; 2026 budgeted fiscal deficit of 530 mn Corporate Social Responsibility Local laws mandate establishments to allocate a portion of annual profits for CSR initiatives Estidamah MOFs National program for fiscal sustainability across Banking & Capital Markets Electric Vehicles Incentives The government incentivized the usage of EVs by offering 100% exemption on import tariffs and waived VAT CBO Focus Sectors CBO mandates lending to eight sectors; Renewable Energy is one of the sectors with lending targets up to 8% of bank’s portfolio • 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 5.40 million (Jun 2026), with Omani nationals comprising 3.06 million and expatriates comprising 2.34 million of the overall figure. Population has increased by 1.7% YoY. • Oman’s Real GDP increased by 2.60% YoY in Q1-2026. • Government revenue has increased by 350 million (13.3%) in Q1-2026 vis-à-vis the same period in 2025. Mainly driven by Net Gas Revenue which increased by 36%. • Government spending has increased from 2,771 million to 3,010 million in Q1-2026 vis-à-vis Q1-2025 mainly due to increase in expenditures towards transformation projects which increased by 31% • Government has realized a deficit of 25 million in Q1-2026. Nevertheless, the deficit is 81.6% lower than Q1-2025 (lower by 111 million) MACRO ECONOMY SOCIOLOGICALOVERVIEW Employment Strategy Employment of 60K Omanis on annual basis is a key focus in the 2026-2030 Government’s development strategy Youth Demographic ~45% of the population is under 25, creating a high demand for mobile- first banking services ESG Disclosures All companies listed with MSX are mandated to report ESG related metrics from 2025 onwards City Reshape Greater Salalah Structure Reshape reveals an ambitious investment programme ~ 4.3 bn through 2040, encompassing 261 initiatives New Entrants According to CBO’s latest Licensing Report; 6 new banks are in the process of entering Oman of which 3 are in progress to receive Banking license Islamic Banks Separation Aligned with Oman 2040 objectives, CBO has issued the Islamic Banking Windows Conversion & Transformation Framework Special Economic & Free Zones New Royal Decree replacing previous Free Zones law, introducing incentives such as 10-year tax exemption Oman’s AI Zone Royal Decree 50/2026 issued to establish Omans AI Special Zone in the Governorate of Muscat Digital Bank Guidelines CBO released final guidelines for the licensing of Digital Banks – 3 Digital banks have applied for licencing Cyber Security Guidelines launched by CBO to further strengthen the Cyber Security & Resilience Risk framework Biometric Payment Expectations of Biometric Payment Framework to be issued by Central Bank of Oman to align with the Technological Strategy of Oman
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nbo.om Thank you