Bank Muscat Share 2026 Outlook

Bank Muscat entered 2026 with stronger profit, higher deposits, growing loans, and improving asset quality.The bank also remains the largest banking institution in Oman.Its 2025 audited results show a healthy business. Net profit increased faster than operating income. Non-interest income was particularly strong.

The story became more interesting in 2026.

Bank Muscat continued to grow profit during the first half of 2026. Loans and deposits also expanded. However, the share price has already risen strongly.

This creates an important question for investors:

Does Bank Muscat stock still have room to grow in 2026?

This analysis uses the uploaded Bank Muscat audited financial statements for 2025 as the main financial source. Current share-price and 2026 information are discussed separately using Bank Muscat and Muscat Stock Exchange data.

Bank Muscat 2025 Financial Results

Bank Muscat reported net profit of OMR 255.54 million in 2025.

That compares with OMR 225.58 million in 2024.

Net profit therefore increased approximately 13.3%.

Here is the main financial comparison:

The audited income statement confirms these figures.

The simple message is positive.Income increased faster than expenses, while credit-loss charges declined.That combination helped profit grow faster than revenue.

Why 13% Profit Growth Matters

Bank profits normally grow through several sources.

Loans Continue Growing

Loans are one of the main income-producing assets of a bank.Bank Muscat’s net loans and Islamic financing reached approximately OMR 10.74 billion in 2025.They were OMR 10.24 billion in 2024.That represents growth of approximately 4.9%.Loan growth was not extremely fast.But moderate growth can sometimes be healthier than aggressive lending.A bank must balance growth with credit quality.Too much lending can create bad loans later.Bank Muscat appears to have maintained relatively controlled growth while improving asset quality.

Deposit Growth Was Stronger

Customer deposits are important because they provide funding for loans.Bank Muscat’s customer deposits, including Islamic deposits, increased to approximately OMR 10.43 billion.They were OMR 9.78 billion in 2024.That represents growth of approximately 6.7%.Deposits therefore grew faster than loans.This is positive for liquidity.It means the bank increased its funding base faster than its lending book.This trend became even stronger during 2026.

Total Assets Cross OMR 15 Billion

Bank Muscat’s total assets increased from approximately OMR 13.91 billion to OMR 15.13 billion.That represents growth of around 8.7%.The bank’s financial statements also show total shareholder funds of approximately OMR 2.59 billion.

This size matters.

Bank Muscat benefits from scale.

A larger balance sheet can support larger corporate transactions, infrastructure projects, government business, and investment banking activities.

Bank Muscat’s June 2026 investor presentation describes it as Oman’s largest bank by assets. It reported a domestic asset market share around 32%.

That makes Bank Muscat difficult to compare with a small local bank.Its scale is one of its strongest competitive advantages.

Asset Quality Improved

One of the most important numbers for any bank investor is the NPL ratio.

NPL means non-performing loan.

In simple words, these are loans where borrowers are having serious repayment problems.Bank Muscat’s gross NPL ratio improved from 3.86% in 2024 to 3.62% in 2025.

This is a positive sign.

At the same time, net impairment losses declined from OMR 64.4 million to around OMR 61.0 million.Lower impairment does not always remain permanent.

However, improving credit quality reduces pressure on earnings.

Capital Position Remains Strong

Banks need sufficient capital to absorb unexpected losses. Bank Muscat’s total capital adequacy ratio was 19.66% at the end of 2025.The Central Bank of Oman minimum requirement was 14.5%. The bank therefore maintained a meaningful capital buffer. Its CET1 ratio was 14.92%, while Tier 1 capital ratio reached 19.09%.Total capital was slightly lower than the 20.02% reported in 2024.This decline does not currently appear alarming.

The bank remained comfortably above regulatory requirements.

Capital strength gives Bank Muscat room to continue lending and paying dividends.

Profitability Improved

Bank Muscat’s return on average equity reached 13.57% in 2025, compared with 12.71% in 2024.Its return on average assets improved to 1.76% from 1.64%.The cost-to-income ratio improved to approximately 38.0% from 38.6%.

These ratios are important.

ROE tells investors how efficiently the bank generates profit from shareholder capital.

ROA measures profit generated from total assets.

Cost-to-income shows how much operating cost is required to produce revenue.

Higher ROE and lower cost-to-income normally support a stronger investment case.

Bank Muscat Dividend Increased

Dividend income is an important reason many investors hold Oman banking stocks.For 2025, Bank Muscat proposed a cash dividend of 18 baisa per share.The 2024 dividend was 16.5 baisa.The total proposed 2025 cash dividend was approximately OMR 135.1 million.This represents dividend growth of approximately 9.1%.Dividend growth usually becomes more sustainable when it is supported by earnings growth.Bank Muscat’s net profit increased 13.3%, faster than the dividend increase.That is a positive relationship.

Meethaq Adds Islamic Banking Growth

Bank Muscat also operates Meethaq Islamic Banking.This gives the group exposure to Oman’s growing Islamic finance market.Meethaq’s 2025 net profit reached OMR 11.82 million, compared with OMR 9.21 million in 2024.That represents growth of approximately 28%.Meethaq’s customer investment deposits also increased.Customer deposits under its quasi-equity structure reached around OMR 1.63 billion, compared with OMR 1.52 billion in 2024.Islamic banking therefore remains another potential growth area.

What Has Happened In 2026?

The 2025 results gave Bank Muscat a strong foundation.The first half of 2026 shows that growth has continued.Bank Muscat reported OMR 137.49 million net profit for H1 2026.That compares with OMR 125.82 million in H1 2025.Profit increased 9.3%.

H1 2026 Financial Comparison

Bank Muscat’s own June investor presentation confirms these trends.This is encouraging.However, there is an important detail.Core interest income increased only 2%.Profit grew faster partly because fee and investment income increased and impairments declined.Investors should therefore watch the quality of earnings.

2026 Deposit Growth Is Very Strong

By June 2026, loans and Islamic financing reached approximately OMR 11.39 billion.That was around 6.2% higher than June 2025.Customer deposits increased 13.2% to OMR 11.18 billion.Again, deposits are growing much faster than loans.The net-loan-to-deposit ratio improved to approximately 101.9%, compared with 108.6% in June 2025.

This is positive for liquidity.

Bank Muscat also reported that low-cost CASA deposits represented around 60% of customer deposits.CASA means current and savings accounts.These deposits normally cost a bank less than fixed deposits.A strong CASA base can protect margins.

NPL Ratio Remains Stable In 2026

Bank Muscat reported a gross NPL ratio of approximately 3.63% in June 2026.That is almost unchanged from 3.62% at year-end 2025.Provision coverage remained around 1.7 times NPLs.

This is important.

Loan growth has continued without a major deterioration in bad loans.That supports the quality of the growth story.

Capital Has Declined Slightly

The capital adequacy ratio declined from 19.66% at December 2025 to 18.69% by June 2026.

Tier 1 capital stood at 18.00%.

However, these ratios remain above regulatory minimum requirements.Investors should continue monitoring this trend.Growing loans require capital.A continued decline in capital ratios could eventually reduce flexibility.At present, Bank Muscat still appears strongly capitalised.

Bank Muscat Share Price Performance

Bank Muscat shares have already performed strongly.According to Bank Muscat’s investor presentation:

• December 2024 share price: OMR 0.252
• December 2025 share price: OMR 0.333
• June 2026 share price: OMR 0.405

That means the share gained approximately 32% during 2025.It then gained another 22% during the first half of 2026.

This is very important.

The company’s financial performance is strong.But investors have already recognised much of that strength.The latest MSX snapshot available for this analysis shows Bank Muscat at approximately OMR 0.396 per share.The stock is therefore slightly below its June 2026 level.But it remains well above its 2024 and 2025 year-end prices.

Is Bank Muscat Stock Expensive?

Using a share price of approximately OMR 0.396:

The 2025 EPS of OMR 0.031 is reported in the audited statements.

Ordinary shareholder equity reached approximately OMR 2.087 billion at year-end 2025.Bank Muscat had approximately 7.506 billion issued shares.These figures produce a book value around OMR 0.278 per ordinary share.At OMR 0.396, investors pay roughly 1.42 times ordinary book value.

The valuation does not look extremely cheap.

However, it also does not appear excessive for Oman’s dominant bank if earnings continue growing.

A Simple 2026 Earnings Estimate

Bank Muscat generated basic EPS of approximately OMR 0.017 during H1 2026.

If the second half performs similarly, full-year EPS could approach roughly OMR 0.034.This is not Bank Muscat’s official forecast.It is only a simple annualised estimate.At the current OMR 0.396 share price:

Forward P/E based on OMR 0.034 EPS ≈ 11.6 times.

That is slightly cheaper than the 12.8 times valuation based on 2025 earnings.The reason is simple.Earnings are still growing.

Bank Muscat Share Price Scenario 2026

Instead of pretending to know one exact future price, investors can use scenarios.

Bear Scenario

Assume EPS reaches only OMR 0.032.Assume investors value the bank at 11 times earnings.

Estimated value:

OMR 0.352 per share

This would represent around 11% downside from OMR 0.396.This scenario could happen if margins weaken, credit costs rise, or the Oman market corrects.

Base Scenario

Assume 2026 EPS reaches approximately OMR 0.034.

Apply a P/E multiple of 12.5 times.

Estimated value:

OMR 0.425 per share

This represents around 7% price upside.If an 18-baisa dividend were maintained, total theoretical return could approach 12%.The dividend is not guaranteed.

Bull Scenario

Assume EPS reaches approximately OMR 0.035.Apply a stronger valuation of 13.5 times earnings.

Estimated value:

OMR 0.473 per share

This represents approximately 19% price upside.Including a possible dividend similar to 2025, theoretical total return could approach 24%.Again, this is a scenario, not a price target.

Why Bank Muscat Could Perform Well

Several factors could support Bank Muscat stock in 2026.

1. Oman Economy Is Improving

Bank Muscat’s June presentation cites IMF expectations for approximately 3.7% real GDP growth in Oman during 2026.

Non-oil sectors continue expanding.Infrastructure, tourism, manufacturing, logistics, and renewable energy can create lending opportunities.Economic growth usually supports banks.

Businesses borrow more.

Consumers spend more.

Transaction volumes increase.

Credit quality can also improve.

2. Bank Muscat Has Market Leadership

Bank Muscat has around one-third of Oman’s banking assets.It also has a large retail customer base and extensive branch network.

This creates scale advantages.

Large banks can spread technology and compliance costs across more customers.They also have greater ability to finance major projects.

3. Strong Deposit Franchise

A 60% CASA ratio is a major strength.Low-cost deposits can help Bank Muscat protect profitability when interest rates change.Deposit growth of 13.2% in H1 2026 is also encouraging.

4. Non-Interest Income Is Growing

2025 other operating income increased 20.4%.H1 2026 non-interest income increased another 12.7%.

This reduces dependence on traditional lending margins.

Fees, wealth management, cards, investment income, and transaction banking can support future growth.

5. Credit Costs Are Falling

Net impairment losses declined in 2025.They declined again during H1 2026.H1 impairment fell to OMR 24.3 million from OMR 30.2 million.Lower credit costs provide direct support to profit.

6. Dividend Provides Income

A 2025 dividend of 18 baisa produces a historical yield around 4.5% at a OMR 0.396 share price.This income can reduce investors’ dependence on capital gains.

Main Risks For Bank Muscat Investors

No investment is risk free.Bank Muscat also faces several risks.

Interest Rate Risk

Lower interest rates may reduce lending margins.

This risk is already visible.

H1 2026 core net interest and Islamic financing income increased only 2%.Profit growth cannot depend forever on lower impairments and investment gains.

Valuation Risk

Bank Muscat shares have already risen significantly.

The stock increased from OMR 0.252 at the end of 2024 to around OMR 0.396 currently.That is an increase of approximately 57%.A stronger valuation means investors now expect better performance.Disappointing earnings could therefore create a larger price reaction.

Credit Risk

The NPL ratio is stable today.

However, banking profits can change quickly if borrowers face financial stress.Corporate lending and large project finance exposures must therefore be monitored.

Capital Ratio

Bank Muscat’s CAR has declined from 20.02% in 2024 to 19.66% in 2025 and 18.69% by June 2026.

It remains strong.

But the direction is worth watching.

Oman Economic Exposure

Bank Muscat remains heavily linked to Oman.

This is normally an advantage because the bank understands its home market.However, weaker oil prices or slower government spending could affect credit growth and business confidence.

What Investors Should Watch Next

For the remainder of 2026, I would focus on six numbers.

Net profit growth: Can Bank Muscat maintain high-single-digit growth?Net interest income: Growth should improve from H1’s 2%.NPL ratio: Keeping this near current levels would support earnings quality.Impairment charges: Lower provisions have helped profit growth.Deposit growth: Strong low-cost deposits remain a major advantage.

Capital adequacy: Investors should watch whether CAR stabilizes around current levels.

Final Investment View

Bank Muscat’s 2025 financial statements show a strong and improving business. Firstly, net profit increased 13.3%, while operating income rose 8.3%. At the same time, other operating income increased by more than 20%, showing stronger income diversification.

Moreover, loans increased by around 5%, while deposits grew by almost 7%. In addition, asset quality improved, ROE increased, and the dividend also moved higher. Therefore, the overall 2025 financial position remained supportive for shareholders.

The positive momentum also continued into the first half of 2026. For example, net profit increased another 9.3%, while loans continued to expand. More importantly, deposits grew much faster, credit losses declined, and asset quality remained stable. As a result, these factors continue to support Bank Muscat’s long-term investment case.

However, investors should also consider the strong rise in Bank Muscat’s share price. The stock increased from OMR 0.252 at the end of 2024 to around OMR 0.396. Consequently, the investment story is no longer simply “a strong bank at a cheap price.” Instead, it is now closer to “a strong bank at a reasonable valuation, but future earnings must justify the higher share price.”

At approximately 12.8 times 2025 earnings and around 1.42 times ordinary book value, Bank Muscat does not appear extremely expensive. Furthermore, its historical dividend yield of around 4.5% provides additional support. If 2026 EPS reaches around OMR 0.034, the current valuation could become more attractive.

Based on different earnings assumptions, a reasonable scenario range may be around OMR 0.35 to OMR 0.47 per share. Nevertheless, the final outcome will depend on profit growth, interest margins, credit quality, and overall market valuation.

Ultimately, the key question is not whether Bank Muscat can grow, because the bank is already expanding. Rather, investors should ask whether earnings can grow fast enough to support a share price that has already increased significantly. For now, Bank Muscat remains one of the most important Oman banking stocks to watch in 2026.

Disclaimer

This article is for informational and educational purposes only and does not constitute investment advice.
Share prices, earnings, dividends, and market conditions may change, and actual results may differ from estimates.
Investors should conduct their own research before making investment decisions.