Q2 2026 Bank Nizwa SAOG Earnings Call

August 26, 2026

Speaker #1: This is Rashad Aldo, Head of Strategy and Investor Relations at Bank Nizwa. It is with immense pleasure that we host you today to discuss Bank Nizwa's first-half performance.

Rashad Al Dol: This is Rashad Al Dol, Head of Strategy and Investor Relations at Bank Nizwa. It is with immense pleasure that we host you today to discuss Bank Nizwa's H1 performance. We have here our Chief Executive Officer, Mr. Tarek Ateek, and our Chief Risk Officer, Mr. Mohamed Fida Hussain, and our Financial Controller, Mr. Jaafar, and our AGM of Operation, Mr. Ismail. I will hand over to our Chief Executive Officer for the opening statement. May I ask everyone to please Bismillahirrahmanirrahim. Assalamualaikum warahmatullahi wabarakatuh. Ladies and gentlemen, distinguished shareholders, investors, and partners, good afternoon. It is a pleasure to be with you today. Every successful journey begins with a clear sense of direction. Direction alone is not enough.

Rashad Al Dohh: This is Rashad Al Dohh, Head of Strategy and Investor Relations at Bank Nizwa. It is with immense pleasure that we host you today to discuss Bank Nizwa's H1 performance. We have here our Chief Executive Officer, Mr. Tarek Ateek, and our Chief Risk Officer, Mr. Mohamed Fida Hussain, and our Financial Controller, Mr. Jaafar, and our AGM of Operation, Mr. Ismail. I will hand over to our Chief Executive Officer for the opening statement. May I ask everyone to please Bismillahirrahmanirrahim. Assalamualaikum warahmatullahi wabarakatuh. Ladies and gentlemen, distinguished shareholders, investors, and partners, good afternoon. It is a pleasure to be with you today. Every successful journey begins with a clear sense of direction. Direction alone is not enough.

Speaker #1: We have here our Chief Executive Officer, Mr. Tarek Atiq; our Chief Risk Officer, Mr. Mohamed Sida; our Financial Controller, Mr. Jafar; and our AGM of Operations.

Speaker #1: I will hand over to our Chief Executive Officer for the opening statement. May I ask everyone to please...

Speaker #2: Ladies and gentlemen, distinguished shareholders, investors, and partners, good afternoon. It is a pleasure to be with you today. Every successful journey begins with a clear sense of direction, but direction alone is not enough.

Speaker #2: What truly defines an institution is how it turns that direction into action, how it responds when the environment changes, and ultimately how it creates lasting value for the people and community it serves.

Tariq Atiq: What truly defines an institution is how it turns that direction into action, how it responds when the environment changes, and ultimately, how it creates lasting value for the people and community it serves. At Bank Nizwa, the H1 of 2026 has been exactly that kind of a journey. It has been a period of transformation, disciplined execution, and important strategic decisions. More importantly, it has been a period that has given us greater confidence in where we are heading. Today, I would like to take you on that journey. Let me begin with our strategy. Over the past period, we took a deliberate step back to ask ourselves a fundamental question: what should Bank Nizwa look like in the years ahead? What role do we want to play in the future of Oman's financial sector?

Speaker #2: At Bank Nizwa, the first half of 2026 has been exactly that kind of journey. It has been a period of transformation, disciplined execution, and important strategic decisions.

Speaker #2: More importantly, it has been a period that has given us greater confidence in where we are heading. Today, I would like to take you on that journey.

Speaker #2: Let me begin with our strategy. Over the past period, we took a deliberate step back to ask ourselves a fundamental question: What should Bank Nizwa look like in the years ahead?

Speaker #2: And what role do we want to play in the future of Oman's financial sector? To answer that question, we brought together our leadership and our people and invested more than 800 hours of intense and collaborative work.

Tariq Atiq: To answer that question, we brought together our leadership and our people and invested more than 800 hours of intense and collaborative work. We challenged assumptions, we tested our ambitions, we studied the market, we analyzed the external environment through PESTEL and Porter's Five Forces, and we pressure-tested our strategic choices against external perspectives. This was not simply an exercise to produce a strategy document. It was about creating a clear roadmap for the future of Bank Nizwa. One that is aligned with Oman Vision 2040, and responsive to our regulatory environment, and grounded in the evolving needs of our customers and stakeholders. From that journey emerged a clear vision: to be a reliable, responsible, and relevant financial institution that benefits all stakeholders. Our mission is equally clear: to empower customers through trusted financial solutions, digital innovation, and responsible banking.

Speaker #2: We challenged assumptions; we tested our ambitions; we studied the market; we analyzed the external environment through PESTLE and Porter's Five Forces; and we pressure-tested our strategic choices against external perspectives.

Speaker #2: This was not simply an exercise to produce a strategy document. It was about creating a clear roadmap for the future of Bank Nizwa—one that is aligned with Aman’s Vision 2040.

Tariq Atiq: One that is aligned with Oman Vision 2040, and responsive to our regulatory environment, and grounded in the evolving needs of our customers and stakeholders. From that journey emerged a clear vision: to be a reliable, responsible, and relevant financial institution that benefits all stakeholders. Our mission is equally clear: to empower customers through trusted financial solutions, digital innovation, and responsible banking.

Speaker #2: And responsive to our regulatory environment, and grounded in the evolving needs of our customers and stakeholders. From that journey emerged a clear vision.

Speaker #2: To be a reliable, responsible, and relevant financial institution that benefits all stakeholders. Our mission is equally clear: to empower customers through trusted financial solutions, digital innovation, and responsible banking.

Speaker #2: And underpinning everything we do are four core values: being Shariah-compliant, being customer-centric, being inclusive and fair, and being driven by integrity. These are not simply words on a page. Being Shariah-compliant means that our products, services, and practices remain firmly anchored in the principles of Islamic finance.

Tariq Atiq: Underpinning everything we do are four core values: being Sharia compliant, being customer-centric, being inclusive and fair, and driven by integrity. These are not simply words on a page. Being Sharia compliant means that our products, services, and practices remain firmly anchored in the principles of Islamic finance. Being customer-centric means putting the customer on the heart of everything that we do and moving beyond transactions to build relationships based on trust, care, and excellence. Being inclusive and fair means ensuring that access to reliable and ethical financial services extends to all while treating our customers, employees, and stakeholders with fairness and with respect. Integrity means doing the right thing with honesty, transparency, and accountability. A vision only becomes meaningful when it is translated into action.

Speaker #2: Being customer-centric means putting the customer at the heart of everything that we do, and moving beyond transactions to build relationships based on trust, care, and excellence.

Speaker #2: Being inclusive and fair means ensuring that access to reliable and ethical financial services extends to all, while treating our customers, employees, and stakeholders with fairness and respect.

Speaker #2: And integrity means doing the right thing with honesty, transparency, and accountability. But the vision only becomes meaningful when it is translated into action. That is why we have developed our strategic delivery roadmap.

Tariq Atiq: That is why we have developed our strategic delivery roadmap, which translates our strategy into a structured portfolio of initiatives across four perspectives. The first one being financial growth, the second being customer excellence, the third being our internal processes, and the fourth being learning and growth. By 2030, we aim to grow our balance sheet while maintaining strong capital adequacy, high-quality assets, robust liquidity, and greater operational efficiency. Ultimately, this is about creating sustainable value for our shareholders, strengthening our equity base, supporting an attractive dividend proposition, and building a stronger institution for the future. A strategy must ultimately translate into performance. While we recognize that there is still significant work ahead, the H1 of 2026 provides a solid foundation.

Speaker #2: which translates our strategy into a structured portfolio of initiatives across four perspectives: the first being financial growth, the second being customer excellence, the third being our internal processes, and the fourth being learning and growth.

Speaker #2: By 2030, we aim to grow our balance sheet while maintaining strong capital adequacy. High-quality assets, robust liquidity, and greater operational efficiency are key focus areas. Ultimately, this is about creating sustainable value for our shareholders, strengthening our equity base, supporting an attractive dividend proposition, and building a stronger institution for the future.

Speaker #2: A strategy must ultimately translate into performance. And while we recognize that there is still significant work ahead, the first half of 2026 provides a solid foundation.

Speaker #2: As of 30 June 2026, our total assets reached approximately $2 billion, representing a growth of 5% compared with the same period last year.

Tariq Atiq: As of 30 June 2026, our total assets reached approximately exceeding OMR 2 billion, representing a growth of 5% compared with the same period last year. Financing to customers increased by 2% to OMR 1.66 billion, while total shareholders' equity grew by 4% to OMR 277.6 million, compared to the same period last year. Our operating performance remained positive, with operating income growing by 5% to OMR 30.3 million, while operating profit increased by 4% to OMR 15.5 million compared with the first six months of 2025. As a management team, we do not look at our performance through one number alone. We look at the complete picture. We celebrate the progress while remaining disciplined about the areas that require further attention. Because our objective is not simply to deliver one strong quarter or one strong year. Our objective is to build sustainable performance.

Speaker #2: Financing to customers increased by 2% to $1.66 billion, while total shareholders' equity grew by 4% to $277.6 million, compared to the same period last year.

Speaker #2: Our operating performance remained positive, with operating income growing by 5% to $30.3 million, while operating profit increased by 4% to $15.5 million, compared with the first six months of 2025.

Speaker #2: As a management team, we do not look at our performance through one number alone. We look at the complete picture. We celebrate the progress while remaining disciplined about the areas that require further attention.

Speaker #2: Because our objective is not simply to deliver one strong quarter or one strong year. Our objective is to build sustainable performance. Along the way, we have also achieved a number of important milestones.

Tariq Atiq: Along the way, we have also achieved a number of important milestones. One of these was our appointment as a primary dealer for International Islamic Liquidity Management Corporation. This is an important step for Bank Nizwa. It strengthens our franchise, expands our institutional relationship, and gives us the opportunity to establish a stronger trading and distribution footprint in international Sukuk markets. At the same time, our total investment portfolio, including Sukuk and equity, recorded strong growth, increasing by 61% from OMR 169 million at the beginning of the year to approximately OMR 272 million as of 30 June 2026. These achievements reflect our broader ambition to deepen our capabilities and strengthen our position across the Islamic financial ecosystem. Transformation is not only about financial markets. It is also about how our customers experience Bank Nizwa every day.

Speaker #2: One of these was our appointment as the primary dealer for the International Islamic Liquidity Management Corporation. This is an important step for Bank Nizwa. It strengthens our franchise, expands our institutional relationships, and gives us the opportunity to establish a stronger trading and distribution footprint in international sukuk markets.

Speaker #2: At the same time, our total investment portfolio, including sukuk and equity, recorded strong growth, increasing by 61% from $169 million at the beginning of the year to approximately $272 million as of 30 June 2026.

Speaker #2: These achievements reflect our broader ambition to deepen our capabilities and strengthen our position across the Islamic financial ecosystem. But transformation is not only about financial markets.

Speaker #2: It is also about how our customers experience Bank Nizwa every day. One of the most visible examples is our revamped mobile banking application. We did not simply redesign the application.

Tariq Atiq: One of the most visible examples is our revamped mobile banking application. We did not simply redesign the application. We started with the customer. We listened to what our customers needed, redesigned the experience around those needs, and delivered a new version that has already received very encouraging feedback. We have also taken another important step in our corporate banking journey through the launch of our state-of-the-art transaction banking platform and the successful migration of our customers to the new platform. Transaction banking is becoming the digital backbone of corporate financial operations. Built on a robust Oracle-based infrastructure, the platform enables businesses to manage payments, collections, liquidity, reporting, and connectivity through a single, secure, and fully Sharia-compliant ecosystem. We have also continued to enhance our digital branch proposition by turning the branch into hybrid branch to better respond to our customer needs.

Speaker #2: We started with the customer. We listened to what our customers needed, redesigned the experience around those needs, and delivered a new version that has already received very encouraging feedback.

Speaker #2: We have also taken another important step in our corporate banking journey through the launch of our state-of-the-art transaction banking platform, and the successful migration of our customers to the new platform.

Speaker #2: Transaction banking is becoming the digital backbone of corporate financial operations. Built on a robust Oracle-based infrastructure, the platform enables businesses to manage payments, connections, liquidity, reporting, and connectivity through a single, secure, and fully Shariah-compliant ecosystem.

Tariq Atiq: Built on a robust Oracle-based infrastructure, the platform enables businesses to manage payments, collections, liquidity, reporting, and connectivity through a single, secure, and fully Sharia-compliant ecosystem. We have also continued to enhance our digital branch proposition by turning the branch into hybrid branch to better respond to our customer needs.

Speaker #2: We have also continued to enhance our digital branch proposition by turning the branch into a hybrid branch, to better respond to our customers' needs.

Speaker #2: For us, digital transformation is therefore not about technology for technology’s sake. It is about making banking simpler, faster, more connected, and more relevant to our customers.

Tariq Atiq: For us, digital transformation is therefore not about technology for technology's sake. It is about making banking simpler, faster, more connected, and more relevant to our customers. Transformation is also about how responsibly we operate. Sustainability has become an integral part of our business model, and we are increasingly embedding ESG considerations into our processes and decision-making. A good example is the digitalization of our retail account opening process. By moving away from paper-based processes and enabling digital sharing and acceptance of terms and conditions, we expect to eliminate more than 200,000 sheets of paper annually, reduce printing costs, improve turnaround time by approximately 50%, and significantly reduce archiving and document transformation costs. We have also enhanced our home financing process, which is expected to improve turnaround time by approximately 67%, reducing paper usage from around 10 pages per application to just one.

Speaker #2: Transformation is also about how responsibly we operate. Sustainability has become an integral part of our business model, and we are increasingly embedding ESG considerations into our processes and decision-making.

Speaker #2: A good example is the digitalization of our retail account opening process. By moving away from paper-based processes and enabling digital sharing and acceptance of terms and conditions, we expect to eliminate more than 200,000 sheets of paper annually.

Speaker #2: Reduce printing costs, improve turnaround time by approximately 50%, and significantly reduce archiving and document transformation costs. We have also enhanced our home finance process, which is expected to improve turnaround time by approximately 67%.

Tariq Atiq: We have also enhanced our home financing process, which is expected to improve turnaround time by approximately 67%, reducing paper usage from around 10 pages per application to just one. Sustainability is not only about reducing our environmental footprint, it is also about financing a more sustainable future. During H1 of the year, we financed 317 eco-friendly vehicles with a total financing value of approximately OMR 2.6 million. These are practical examples of how ESG can move from strategy into everyday banking. But no transformation can succeed without people. Technology can change processes, strategies can change direction, but it is our people who ultimately make transformation happen.

Speaker #2: Reducing paper usage from around 10 pages per application to just one. And sustainability is not only about reducing our environmental footprint; it is also about financing a more sustainable future.

Tariq Atiq: Sustainability is not only about reducing our environmental footprint, it is also about financing a more sustainable future. During H1 of the year, we financed 317 eco-friendly vehicles with a total financing value of approximately OMR 2.6 million. These are practical examples of how ESG can move from strategy into everyday banking. But no transformation can succeed without people. Technology can change processes, strategies can change direction, but it is our people who ultimately make transformation happen. During H1 of the year, we continued investing in Omani talent and in the development of capabilities within the Islamic finance industry. We provided 300 face-to-face training opportunities, while our upgraded learning management system now provides access to more than 90,000 training opportunities across different fields.

Speaker #2: During the first half of the year, we financed 317 eco-friendly vehicles with a total financing value of approximately $2.6 million. These are practical examples of how ESG can move from strategy into everyday banking.

Speaker #2: But no transformation can succeed without people. Technology can change processes, and strategies can change direction, but it is our people who ultimately make transformation happen.

Speaker #2: During the first half of the year, we continued investing in Omani talent and in the development of capabilities within the Islamic finance industry. We provided 300 face-to-face training opportunities.

Tariq Atiq: During H1 of the year, we continued investing in Omani talent and in the development of capabilities within the Islamic finance industry. We provided 300 face-to-face training opportunities, while our upgraded learning management system now provides access to more than 90,000 training opportunities across different fields. We also launched a comprehensive AI and AI-generated training program that will equip our employees and participants with practical tools and applications that can enhance operational efficiency and improve customer experience. The program brought together participants from the bank and the government sector, reflecting our commitment not only to developing our own people, but also to sharing knowledge and expertise across the wider ecosystem.

Speaker #2: While our upgraded learning management system now provides access to more than 90,000 training opportunities across different fields, we also launched a comprehensive AI and AI-generating training program.

Tariq Atiq: We also launched a comprehensive AI and AI-generated training program that will equip our employees and participants with practical tools and applications that can enhance operational efficiency and improve customer experience. The program brought together participants from the bank and the government sector, reflecting our commitment not only to developing our own people, but also to sharing knowledge and expertise across the wider ecosystem. Because when we talk about transformation, we are ultimately talking about transforming capabilities. While we have been transforming from within, the broader Islamic banking landscape in Oman has also been evolving. Islamic finance has become one of the key growth drivers of Oman's financial sector. The combined assets of Islamic banks and Islamic banking windows reached approximately OMR 10 billion by end of June 2026, representing around 18.9% of the sultanate's total banking sector assets.

Speaker #2: That will equip our employees and participants with practical tools and applications that can enhance operational efficiency and improve customer experience. The program brought together participants from the bank and the government sector.

Speaker #2: Reflecting our commitment not only to developing our own people, but also to sharing knowledge and expertise across the wider ecosystem. Because when we talk about transformation, we are ultimately talking about transforming capabilities.

Tariq Atiq: Because when we talk about transformation, we are ultimately talking about transforming capabilities. While we have been transforming from within, the broader Islamic banking landscape in Oman has also been evolving. Islamic finance has become one of the key growth drivers of Oman's financial sector. The combined assets of Islamic banks and Islamic banking windows reached approximately OMR 10 billion by end of June 2026, representing around 18.9% of the sultanate's total banking sector assets.

Speaker #2: While we have been transforming from within, the broader Islamic banking landscape in Oman has also been evolving. Islamic finance has become one of the key growth drivers of Oman's financial sector.

Speaker #2: The combined assets of Islamic banks and Islamic banking windows reached approximately OMR 10 billion by the end of June 2026, representing around 18.9% of the Sultanate's total banking sector assets.

Speaker #2: It demonstrates that Islamic finance is no longer a niche segment. It is becoming an increasingly important component of Oman's financial system—supporting economic development, financial inclusion, national projects, and the objectives of Oman Vision 2040.

Tariq Atiq: It demonstrates that Islamic finance is no longer a niche segment. It is becoming an increasingly important component of Oman's financial system, supporting economic development, financial inclusion, national projects, and the objectives of Oman Vision 2040. Against this backdrop, we welcome the Central Bank of Oman's recent decision to enhance the operational independence of Islamic banking windows. I would like to take this opportunity to express our sincere appreciation to the Central Bank of Oman for its continued leadership and commitment to developing Oman's Islamic banking industry. This decision reflects the maturity that the Islamic banking sector has achieved and demonstrates the regulators' forward-looking approach to creating a more dynamic, resilient, and competitive Islamic financial ecosystem. We believe that greater operational independence can create further opportunities for innovation, enhance competitiveness, broaden the range of Sharia-compliant financial solutions, and allow institutions to respond more effectively to changing customer and market needs.

Speaker #2: Against this backdrop, we welcome the Central Bank of Oman's recent decision to enhance the operational independence of Islamic banking windows. I would like to take this opportunity to express our sincere appreciation to the Central Bank of Oman for its continued leadership and commitment to developing Oman's Islamic banking industry.

Speaker #2: This decision reflects the maturity that the Islamic banking sector has achieved and demonstrates the regulator's forward-looking approach to creating a more dynamic, resilient, and competitive Islamic financial ecosystem.

Speaker #2: We believe that greater operational independence can create further opportunities for innovation, enhance competitiveness, broaden the range of Shariah-compliant financial solutions, and allow institutions to respond more effectively to changing customer and market needs.

Tariq Atiq: We believe that greater operational independence can create further opportunities for innovation, enhance competitiveness, broaden the range of Sharia-compliant financial solutions, and allow institutions to respond more effectively to changing customer and market needs.

Speaker #2: It can also further strengthen the role of Islamic finance in supporting Oman's ecosystem development and contribute to establishing the Sultanate as a leading regional hub for Islamic finance.

Tariq Atiq: It can also further strengthen the role of Islamic finance in supporting Oman's ecosystem development and contribute to establishing the Sultanate as a leading regional hub for Islamic finance. For Bank Nizwa, regulatory developments such as these are not simply changes to which we respond. They are opportunities to think ahead. They encourage us to ask: How can we position Bank Nizwa to lead the next chapter of Islamic finance in Oman? It is with this mindset that we have taken a proactive strategic initiative regarding the proposed acquisition and merger of Alizz Islamic Bank into Bank Nizwa. We believe that bringing together two Islamic banking institutions has the potential to create greater scale, stronger capabilities, enhanced competitiveness, and broader opportunities for the development of Islamic finance in Oman. Furthermore, we remain disciplined in our approach.

Speaker #2: For Bank Nizwa, regulatory developments such as these are not simply changes to which we respond; they are opportunities to think ahead. They encourage us to ask: How can we position Bank Nizwa to lead the next chapter of Islamic finance in Oman?

Speaker #2: It is with this mindset that we have taken a proactive, strategic initiative regarding the proposed acquisition and merger of Al Aiz Islamic Bank into Bank Nizwa.

Speaker #2: We believe that bringing together two Islamic banking institutions has the potential to create greater scale, stronger capabilities, enhanced competitiveness, and broader opportunities for the development of Islamic finance in Oman.

Speaker #2: Furthermore, we remain disciplined in our approach. The transaction is currently at the due diligence stage, and there are a number of regulatory, financial, legal, operational, commercial, and other matters that must be carefully assessed before any further decisions are taken.

Tariq Atiq: The transaction is currently at the due diligence stage, and there are a number of regulatory, financial, legal, operational, commercial, and other matters that must be carefully assessed before any further decisions are taken. We will continue to follow the appropriate regulatory and governance processes, and we will keep our stakeholders informed of any material developments. As we look toward the H2 of 2026, I want to emphasize one important message. We are not standing still. We are taking Bank Nizwa to the next level. We are strengthening our strategy. We are investing in digital transformation. We are developing our people. We are expanding our capabilities in Islamic capital markets. We are embedding sustainability into our businesses, and we are exploring strategic opportunities that can strengthen our position for the future. We will continue to focus on disciplined execution, stronger customer relationships, operational excellence, innovation, and sustainable growth.

Speaker #2: We will continue to follow the appropriate regulatory and governance processes, and we will keep our stakeholders informed of any material developments. As we look toward the second half of 2026, I want to emphasize one important message.

Speaker #2: We are not standing still. We are taking Bank Nizwa to the next level. We are strengthening our strategy, we are investing in digital transformation, we are developing our people, we are expanding our capabilities in Islamic capital markets, we are embedding sustainability into our businesses, and we are exploring strategic opportunities that can strengthen our position for the future.

Tariq Atiq: We are embedding sustainability into our businesses, and we are exploring strategic opportunities that can strengthen our position for the future. We will continue to focus on disciplined execution, stronger customer relationships, operational excellence, innovation, and sustainable growth.

Speaker #2: We will continue to focus on disciplined execution, stronger customer relationships, operational excellence, innovation, and sustainable growth. Because ultimately, our success will not be measured by financial numbers alone.

Tariq Atiq: Because ultimately, our success will not be measured by financial numbers alone. It will be measured by the enduring value we create for every stakeholder. When we look back at the first six months of 2026, we see more than a collection of financial results and achievements. We see the early chapters of a larger story, a story of a bank that is becoming more ambitious, digital, sustainable, capable, and more prepared to lead. Before I conclude, I would like to express my sincere appreciation to the Central Bank of Oman and all our regulators for their continued guidance and support. Also, I would like to thank our shareholders and the board of directors for their continued confidence and support, without which many of these milestones would not have been possible.

Speaker #2: It will be measured by the enduring value we create for every stakeholder. When we look back at the first six months of 2026, we see more than a collection of financial results and achievements.

Speaker #2: We see the early chapters of a larger story—a story of a bank that is becoming more ambitious, digital, sustainable, capable, and more prepared to lead.

Speaker #2: Before I conclude, I would like to express my sincere appreciation to the Central Bank of Oman and all our regulators for their continued guidance and support.

Speaker #2: Also, I would like to thank our shareholders and the Board of Directors for their continued confidence and support, without which many of these milestones would not have been possible.

Speaker #2: And most importantly, I would like to thank the entire Bank Nizwa family for their dedication, commitment, and belief in what we are building together.

Tariq Atiq: Most importantly, I would like to thank the entire Bank Nizwa family for their dedication, commitment, and belief in what we are building together. Thank you. Now I would like to invite Mr. Rashad, our Head of Strategy at Bank Nizwa, to take you through our financial performance in greater detail.

Speaker #2: Thank you, and now I would like to invite Mr. Rashad, our Head of Strategy at Bank Nizwa, to take you through our financial performance in greater detail.

Speaker #1: Thank you. Thank you, Mr. Tareq. Welcome back, everyone. Dear audience, I will be more than happy to walk you through the financial performance for the first half of 2026.

Rashad Al Dol: Thank you, Mr. Tariq. Welcome back, everyone. Dear audience, I will be more than happy to walk you through the financial performance for H1 2026. Before we move forward, a slight disclaimer that this presentation is only intended to provide a general overview of Bank Nizwa. As of today, I may not cover all detailed aspects. It is shared for informational purposes and should not be considered as an investment advice. We do encourage investors, stakeholders, shareholders to seek independent professional advice based on their risk appetite and their individual circumstances. Today, I will be covering four main areas. We will talk about Oman's macro operating environment. We will then funnel down to the banking sector overview and Bank Nizwa's newly formulated five-year strategy. Last but not least, we will talk about Bank Nizwa's performance.

Salim Rashid Al Maharbi: Thank you, Mr. Tariq. Welcome back, everyone. Dear audience, I will be more than happy to walk you through the financial performance for H1 2026. Before we move forward, a slight disclaimer that this presentation is only intended to provide a general overview of Bank Nizwa. As of today, I may not cover all detailed aspects. It is shared for informational purposes and should not be considered as an investment advice. We do encourage investors, stakeholders, shareholders to seek independent professional advice based on their risk appetite and their individual circumstances. Today, I will be covering four main areas. We will talk about Oman's macro operating environment. We will then funnel down to the banking sector overview and Bank Nizwa's newly formulated five-year strategy. Last but not least, we will talk about Bank Nizwa's performance.

Speaker #1: Before we move forward, a slight disclaimer: This presentation is only intended to provide a general overview of Bank Nizwa as of today. I may not cover all detailed aspects.

Speaker #1: It is shared for informational purposes and should not be considered as investment advice. We do encourage investors, stakeholders, and shareholders to seek independent professional advice based on their risk appetite and individual circumstances.

Speaker #1: Today, I will be covering four main areas. We will talk about Oman's macro operating environment, and then we will funnel down to the banking sector overview.

Speaker #1: And Bank Nizwa's newly formulated five-year strategy. Last but not least, we will talk about Bank Nizwa's performance. After the presentation, we will open the floor for any questions the audience might have.

Rashad Al Dol: After the presentation, we will open the floor for any questions the audience might have. Oman's economy has shown great signs of resilience and growth, underpinned by strong fundamentals and robust economic activity. During 2025, Oman's trade balance showed a surplus of OMR 4.6 billion, signaling a strong export market for Oman. As of December 2025, the Muscat Stock Exchange showed exceptional performance reflecting the strength of the national economy and the success of various government initiatives. Market capitalization for MSX rose 59% since 2020, driven by the initiatives like the Capital Market Incentives Programme, enhanced liquidity, and enhanced confidence among local and international investors. Average daily trading volume reached around OMR 20 million in 2025, making it one of the Gulf region's top performers in 2025. During the same year, the expected oil price was $60, and that was the basis for the budget for 2025.

Salim Rashid Al Maharbi: After the presentation, we will open the floor for any questions the audience might have. Oman's economy has shown great signs of resilience and growth, underpinned by strong fundamentals and robust economic activity. During 2025, Oman's trade balance showed a surplus of OMR 4.6 billion, signaling a strong export market for Oman. As of December 2025, the Muscat Stock Exchange showed exceptional performance reflecting the strength of the national economy and the success of various government initiatives. Market capitalization for MSX rose 59% since 2020, driven by the initiatives like the Capital Market Incentives Programme, enhanced liquidity, and enhanced confidence among local and international investors.

Speaker #1: Oman's economy has shown great signs of resilience and growth, underpinned by strong fundamentals and robust economic activity. During 2025, Oman's trade balance showed a surplus of 4.6 billion riyals.

Speaker #1: Signaling a strong export market for Oman. As of December 2025, the Muscat Stock Exchange showed exceptional performance, reflecting the strength of the national economy.

Speaker #1: And the success of various government initiatives. Market capitalization for MSX rose 59% since 2020, driven by initiatives like the Capital Markets Development Program.

Speaker #1: Enhanced liquidity and enhanced confidence among local and international investors. Average daily trading volume reached around 20 million riyals in 2025, making it one of the Gulf region's top performers in 2025.

Salim Rashid Al Maharbi: Average daily trading volume reached around OMR 20 million in 2025, making it one of the Gulf region's top performers in 2025. During the same year, the expected oil price was $60, and that was the basis for the budget for 2025. But the full-year average for Oman crude was actually $70 in 2025, $10 more than the state budget. As a result, we saw higher revenues and spending by the government and a shrinkage of the expected fiscal deficit, reaching OMR 480 million, or in other terms, 4.3% of revenues. Moving over to Oman's 2026 budget, the assumption was the same $60 per barrel. As of the latest results, the price of Oman crude is around $99 and has been on a higher average trajectory than last year, which would spur more investment from the government, higher expenditure, and further spurring of the basic infrastructure in Oman.

Speaker #1: During the same year, the expected oil price was $60, and that was the basis for the budget for 2025. But the full-year average for Oman's crude was actually $70 in 2025.

Rashad Al Dol: But the full-year average for Oman crude was actually $70 in 2025, $10 more than the state budget. As a result, we saw higher revenues and spending by the government and a shrinkage of the expected fiscal deficit, reaching OMR 480 million, or in other terms, 4.3% of revenues. Moving over to Oman's 2026 budget, the assumption was the same $60 per barrel. As of the latest results, the price of Oman crude is around $99 and has been on a higher average trajectory than last year, which would spur more investment from the government, higher expenditure, and further spurring of the basic infrastructure in Oman. Moving on from the fiscal side to the economic, Oman's real GDP grew 2.4% year-on-year, driven by non-oil activity and seeing the private sector playing a bigger role.

Speaker #1: $10 more than the state budget. As a result, we saw higher revenues and spending by the government, and a shrinkage of the expected fiscal deficit, reaching 480 million riyals.

Speaker #1: Or, in other terms, 4.3% of revenues. Moving over to Oman's 2026 budget—the assumption was the same: $60 per barrel. As of the latest results, the price of Oman crude is around $99.

Speaker #1: And has been on a higher average trajectory than last year, which would spur more investment from the government, higher expenditure, and further spurring of the basic infrastructure in Oman.

Speaker #1: Moving on from the fiscal side to the economic, Oman's real GDP grew 2.4% year-on-year, driven by non-oil activity and with the private sector playing a bigger role.

Salim Rashid Al Maharbi: Moving on from the fiscal side to the economic, Oman's real GDP grew 2.4% year-on-year, driven by non-oil activity and seeing the private sector playing a bigger role.

Speaker #1: We have witnessed Oman's credit rating move to investment grade by all three major rating agencies, as a result of continuous improvement in the state's public finances and a lowering of external debt.

Rashad Al Dol: We have witnessed Oman's credit rating moving to investment grade by all three major rating agencies as a result of continuous improvement in the state's public finances and lowering of external debt. As we embark on Oman's 11th five-year plan from 2026 to 2030, it is important we reflect on the key indicators from the 10th five-year plan. Major indicators include the reduction of public debt from 67% to 35% in a span of five years, and raising foreign direct investments by more than double to reach OMR 30 billion in 2025. It is worth noting a lot of these foreign direct investments come from countries like the US, the UK, and other major developed countries. On the left-hand side, we will look at some of the key government initiatives that is included in the 2026 budget.

Salim Rashid Al Maharbi: We have witnessed Oman's credit rating moving to investment grade by all three major rating agencies as a result of continuous improvement in the state's public finances and lowering of external debt. As we embark on Oman's 11th five-year plan from 2026 to 2030, it is important we reflect on the key indicators from the 10th five-year plan. Major indicators include the reduction of public debt from 67% to 35% in a span of five years, and raising foreign direct investments by more than double to reach OMR 30 billion in 2025. It is worth noting a lot of these foreign direct investments come from countries like the US, the UK, and other major developed countries. On the left-hand side, we will look at some of the key government initiatives that is included in the 2026 budget.

Speaker #1: As we embark on Oman's 11th five-year plan from 2026 to 2030, it is important that we reflect on the key indicators from the 10th five-year plan.

Speaker #1: Major indicators include the reduction of public debt from 67% to 35% in a span of five years, and raising foreign direct investments by more than double to reach 30 billion riyals in 2025.

Speaker #1: It is worth noting that a lot of these foreign direct investments come from countries like the US, the UK, and other major developed countries. On the left-hand side, we will look at some of the key government initiatives.

Speaker #1: That is, included in the 2026 budget. And those are the basic initiatives that the government is investing in to spur the economy and create a more developed economy as we look forward towards Oman's Vision 2040.

Rashad Al Dol: And those are the basic initiatives that the government is investing to spur the economy and create a more developed economy as we look forward towards Oman Vision 2040. For education alone, an allotment of OMR 2.1 billion is going this year alone into education. That is going to go to the construction of 42 new public schools and the opening of a new College of Law at Sultan Qaboos University, along with more than 11,000 scholarships for young Omanis, internally and externally. Health, for example, will be allocated OMR 1.3 billion this year. We will see construction of six new hospitals, nine health centers, and the onboarding of more than 3,700 qualified Omani personnel. On the Social Security and Welfare side, there has been a lot of subsidies and support for the local citizens, and a lot of insurance and social grants that have been given.

Salim Rashid Al Maharbi: And those are the basic initiatives that the government is investing to spur the economy and create a more developed economy as we look forward towards Oman Vision 2040. For education alone, an allotment of OMR 2.1 billion is going this year alone into education. That is going to go to the construction of 42 new public schools and the opening of a new College of Law at Sultan Qaboos University, along with more than 11,000 scholarships for young Omanis, internally and externally. Health, for example, will be allocated OMR 1.3 billion this year. We will see construction of six new hospitals, nine health centers, and the onboarding of more than 3,700 qualified Omani personnel. On the Social Security and Welfare side, there has been a lot of subsidies and support for the local citizens, and a lot of insurance and social grants that have been given.

Speaker #1: For education alone, an allotment of 2.1 billion riyals is going this year alone into education. That's going to go to the construction of 42 new public schools.

Speaker #1: And the opening of a new College of Law at SQU, along with more than 11,000 scholarships for young Omanis, both internally and externally. Health, for example, will be allocated OMR 1.3 billion this year.

Speaker #1: We will see the construction of six new hospitals, nine health centers, and the onboarding of more than 3,700 qualified Omani personnel. On the social security and welfare side, there has been a lot of subsidies and support for local citizens.

Speaker #1: And a lot of insurance and social grants have been given. We will see that the Muscat Expressway expansion is underway, along with road dualization projects.

Rashad Al Dol: We will see that the Muscat Expressway expansion is underway, along with road dualization projects. Last but not least, there is the great Sultan Haitham City in Al Thumayrit, which is under construction now, which should add a lot of units and attract a lot of investment and expats and investors from overseas. Moving over to the Omani banking sector. The Omani banking sector combined charts we see here is a combination of the conventional and Islamic balance sheet and P&L. It is clear to see that there has been remarkable growth across different metrics, not just remarkable, but consistent. For example, when we talk about the total sectoral credit, which has hit more than OMR 35 billion, that is almost a little less than $100 billion, with a CAGR of 4.89%.

Salim Rashid Al Maharbi: We will see that the Muscat Expressway expansion is underway, along with road dualization projects. Last but not least, there is the great Sultan Haitham City in Al Thumayrit, which is under construction now, which should add a lot of units and attract a lot of investment and expats and investors from overseas. Moving over to the Omani banking sector. The Omani banking sector combined charts we see here is a combination of the conventional and Islamic balance sheet and P&L. It is clear to see that there has been remarkable growth across different metrics, not just remarkable, but consistent. For example, when we talk about the total sectoral credit, which has hit more than OMR 35 billion, that is almost a little less than $100 billion, with a CAGR of 4.89%.

Speaker #1: Last but not least, there is the Great Salt Sultan Haitham City and the Turaiya, which is under construction now. This should add a lot of units and attract a lot of investment, as well as expats and investors from overseas.

Speaker #1: Moving over to the Omani banking sector. The Omani banking sector combined charts we see here are a combination of the conventional and Islamic balance sheet and profit and loss.

Speaker #1: It is clear to see that there's been remarkable growth across different metrics—not just remarkable, but consistent. So, for example, when we talk about the total sectoral credit, it has now surpassed $35 billion riyals.

Speaker #1: It's almost a little less than $100 billion, with a compounded annual growth rate of 4.89%. On the right-hand side, we'll see total sectoral assets.

Rashad Al Dol: On the right-hand side, we will see total sectoral assets hitting a CAGR of 4.82%, almost touching OMR 50 billion. On the deposit side, the growth and the momentum has actually outpaced the credit. This is a sign of ample liquidity in the market, 5.81 CAGR over the last five years, and a staggering 12.55% growth in the sectoral profits. This is in OMR, 576 million from 390 in just five years ago. This is of the top eight Omani banks operating in the Sultanate. The key message here is that the sector is very healthy, it is consistent, it is robust, and is on a growth trajectory. We witnessed a strong growth momentum on both sides of the balance sheet. Here we will break down the balance sheet and the P&L growth from a conventional and Islamic sides.

Salim Rashid Al Maharbi: On the right-hand side, we will see total sectoral assets hitting a CAGR of 4.82%, almost touching OMR 50 billion. On the deposit side, the growth and the momentum has actually outpaced the credit. This is a sign of ample liquidity in the market, 5.81 CAGR over the last five years, and a staggering 12.55% growth in the sectoral profits. This is in OMR, 576 million from 390 in just five years ago. This is of the top eight Omani banks operating in the Sultanate. The key message here is that the sector is very healthy, it is consistent, it is robust, and is on a growth trajectory. We witnessed a strong growth momentum on both sides of the balance sheet. Here we will break down the balance sheet and the P&L growth from a conventional and Islamic sides.

Speaker #1: Hitting a CAGR of 4.82%, almost touching 50 billion riyals. On the deposit side, the growth and the momentum have actually outpaced the credit. This is a sign of ample liquidity in the market.

Speaker #1: 5.81% CAGR over the last five years, and a staggering 12.55% growth in sectoral profits. This is in riyals: 576 million, from 319 million just five years ago.

Speaker #1: This is one of the top eight Omani banks operating in the Sultanate. The key message here is that the sector is very healthy.

Speaker #1: It is consistent. It is robust. And it is on a growth trajectory. We witnessed strong growth momentum on both sides of the balance sheet.

Speaker #1: So here, we will break down the balance sheet and the P&L growth from both conventional and Islamic sides. It is worth noting that Oman is not immune to the global economy.

Rashad Al Dol: It is worth noting that Oman is not immune to the global economy, the local indicators, and the geopolitics. Despite the strong headwinds that we are facing globally and in the region, the banking industry showed strong resilience and continues to have strong performance underpinned by solid capital, liquidity, and low NPLs compared to the region. When we look at the credit for conventional banks, conventional banks alone grew 12.8% year on year, while deposits increased 14.2% during the same period. This trend has been holding true for several years, where deposits are growing faster than credit, giving a lot of room for financing and lending growth. Credit has been driven from the private sector demand as well as GREs. On the other hand, for conventional banks, the public enterprises deposits went up 72% year on year.

Salim Rashid Al Maharbi: It is worth noting that Oman is not immune to the global economy, the local indicators, and the geopolitics. Despite the strong headwinds that we are facing globally and in the region, the banking industry showed strong resilience and continues to have strong performance underpinned by solid capital, liquidity, and low NPLs compared to the region. When we look at the credit for conventional banks, conventional banks alone grew 12.8% year on year, while deposits increased 14.2% during the same period. This trend has been holding true for several years, where deposits are growing faster than credit, giving a lot of room for financing and lending growth. Credit has been driven from the private sector demand as well as GREs. On the other hand, for conventional banks, the public enterprises deposits went up 72% year on year.

Speaker #1: The local indicators and the geopolitics—so despite the strong headwinds that we are facing, globally and in the region, the banking industry showed strong resilience.

Speaker #1: And continues to have strong performance, underpinned by solid capital, liquidity, and low NPLs compared to the region. When we look at the credit for conventional banks, conventional banks alone grew 12.8% year-on-year.

Speaker #1: While deposits increased by 14.2% during the same period, this trend has been holding true for several years, where deposits are growing faster than credit, giving a lot of room for financing and lending growth.

Speaker #1: Credit has been driven from the private sector, demand, as well as GREs. On the other hand, for conventional banks, public enterprises' deposits went up 72% year-on-year.

Speaker #1: So while that might seem a bit high, those are actually the normal levels that we witnessed in the first half of 2025 and the second half of 2024.

Rashad Al Dol: While that might seem a bit high, those are actually the normal levels that we witnessed in 2025 H1 and the H2 of 2024. They have dipped a little bit, and then it is back to the normal level. On the Omani rial lending and deposit rates for the sector, we have seen a dip, a decline. Omani rial lending and deposit rates went down 15 basis points and 22 basis points, respectively. When we look at the Islamic side, Islamic banks and windows increased 8.7% to reach around OMR 10 billion in assets and almost 19% market share from the total sectoral assets. Islamic financing alone reached OMR 8 billion, a growth of 10.5%, and total deposits reached 7.8%, an increase of 9.7%. Bank Nizwa is embarking on a new and exciting journey ahead.

Salim Rashid Al Maharbi: While that might seem a bit high, those are actually the normal levels that we witnessed in 2025 H1 and the H2 of 2024. They have dipped a little bit, and then it is back to the normal level. On the Omani rial lending and deposit rates for the sector, we have seen a dip, a decline. Omani rial lending and deposit rates went down 15 basis points and 22 basis points, respectively. When we look at the Islamic side, Islamic banks and windows increased 8.7% to reach around OMR 10 billion in assets and almost 19% market share from the total sectoral assets. Islamic financing alone reached OMR 8 billion, a growth of 10.5%, and total deposits reached 7.8%, an increase of 9.7%. Bank Nizwa is embarking on a new and exciting journey ahead.

Speaker #1: So, they have dipped a little bit, and then it's back to the normal level. On the riyal lending and deposit rates for the sector, we have seen a dip—a decline.

Speaker #1: OMR lending and deposit rates went down 15 basis points and 22 basis points, respectively. When we look at the Islamic side, Islamic banks and windows increased 8.7% to reach around OMR 10 billion in assets.

Speaker #1: And almost 19% market share, or from the total sectoral assets. Islamic financing alone reached $8 billion, a growth of 10.5%. And total deposits reached $7.8 billion, an increase of 9.7%.

Speaker #1: Bank Nizwa is embarking on a new and exciting journey ahead. And to continue our strong positioning, we formulated a new five-year strategy, focusing on adding value to our customers, being digitally innovative, and giving back to our community, all while maintaining our unshakable Sharia values and transparency.

Rashad Al Dol: To continue our strong positioning, we formulated a new five-year strategy focusing on adding value to our customer, being digitally innovative, giving back to our community, all while maintaining our unshakable Sharia values and transparency. Our vision is simple yet clear, that we want to be a reliable, responsible, and relevant institution in today's ever-evolving world. Our values remain unchanged and intact and clear on the right-hand side to be Sharia compliant, put customer centricity at the base and focus of what we do every day, be inclusive and fair, and have integrity in everything that we do. To do so, the bank has adopted the global best practice of the balanced scorecard, whereby focusing on four key pillars. On the right-hand side, the financial pillar, the customer pillar, internal processes, and finally, learning and growth.

Salim Rashid Al Maharbi: To continue our strong positioning, we formulated a new five-year strategy focusing on adding value to our customer, being digitally innovative, giving back to our community, all while maintaining our unshakable Sharia values and transparency. Our vision is simple yet clear, that we want to be a reliable, responsible, and relevant institution in today's ever-evolving world. Our values remain unchanged and intact and clear on the right-hand side to be Sharia compliant, put customer centricity at the base and focus of what we do every day, be inclusive and fair, and have integrity in everything that we do. To do so, the bank has adopted the global best practice of the balanced scorecard, whereby focusing on four key pillars. On the right-hand side, the financial pillar, the customer pillar, internal processes, and finally, learning and growth.

Speaker #1: Our vision is simple, yet clear: we want to be a reliable, responsible, and relevant institution in today's ever-evolving world. Our values remain unchanged, intact, and clear.

Speaker #1: On the right-hand side, to be Sharia compliant, put customer centricity at the base and focus of what we do every day. Be inclusive and fair.

Speaker #1: And have integrity in everything that we do. To do so, the bank has adopted the global best practice of the Balanced Scorecard, whereby we focus on four key pillars: on the right-hand side, the financial pillar, the customer pillar, internal processes, and finally, learning and growth.

Speaker #1: From those four perspectives, or pillars, certain objectives were born. And from those objectives, we came up with a long list of initiatives and we assigned those initiatives to C-level objective owners in the organization, who are responsible to deliver these objectives.

Rashad Al Dol: From those four perspective of pillars, certain objectives were born. From those objectives, we came up with a long list of initiatives, and we assigned those initiatives to C-level objective owners in the organization who are responsible to deliver these objectives that will, Inshallah, deliver and take us to what we aspire to be and where we want to be by 2030. Moving over, we will talk about Bank Nizwa's performance. We are committed to delivering value add to our shareholders while maintaining a robust baseline and consistent profitability. Bank Nizwa's financing book saw a CAGR of 5.95% since 2022 with a diversified portfolio of sectors. We remain committed to playing a vital role in the economy while adhering to CBO's sectoral lending guidelines. Bank Nizwa's asset base grew 6.67%, driven by increased financing and increased wholesale and treasury activity and investments in sovereign and government Sukuk.

Salim Rashid Al Maharbi: From those four perspective of pillars, certain objectives were born. From those objectives, we came up with a long list of initiatives, and we assigned those initiatives to C-level objective owners in the organization who are responsible to deliver these objectives that will, Inshallah, deliver and take us to what we aspire to be and where we want to be by 2030. Moving over, we will talk about Bank Nizwa's performance. We are committed to delivering value add to our shareholders while maintaining a robust baseline and consistent profitability. Bank Nizwa's financing book saw a CAGR of 5.95% since 2022 with a diversified portfolio of sectors.

Speaker #1: That will, inshallah, deliver and take us to what we aspire to be and where we want to be by 2030. Moving over, we will talk about Bank Nizwa's performance.

Speaker #1: We are committed to delivering value-add to our shareholders, while maintaining a robust baseline and consistent profitability. Bank Nizwa's financing book saw a CAGR of 5.95% since 2022, with a diversified portfolio of sectors.

Speaker #1: We remain committed to playing a vital role in the economy, while adhering to CBO's sectoral lending guidelines. Bank Nizwa's asset base grew 6.67%, driven by increased financing as well as increased wholesale and treasury activity, and investments in sovereign and government sukuk.

Salim Rashid Al Maharbi: We remain committed to playing a vital role in the economy while adhering to CBO's sectoral lending guidelines. Bank Nizwa's asset base grew 6.67%, driven by increased financing and increased wholesale and treasury activity and investments in sovereign and government Sukuk.

Speaker #1: On the deposit base, we continue to be strong, and customer deposits remain the main driver of our funding base. From 2022 to 2025, we have added almost 500 million riyals.

Rashad Al Dol: On the deposit base, we continue to be strong and customer deposits continue to be our main driver of our funding base. From 2022 to 2025, we have added almost OMR 500 million in pure customer deposits. The marginal dip in 2026 was part of a cost control measure as we remain liquid and adequately funded. Moving over to our equity story, we have seen strong growth in our equity, supported by increased returned earnings and our issuance of Mandatory Convertible Sukuk. Moving over to our profitability profile, we see our operating profit increasing 3.8% year-on-year from June 2025 to June 2026, supported by the increase on the right-hand side on the NFI side and a slight increase in the profit or the financing portfolio. It is worth noting that our NFI has went up 22.7% year-on-year.

Salim Rashid Al Maharbi: On the deposit base, we continue to be strong and customer deposits continue to be our main driver of our funding base. From 2022 to 2025, we have added almost OMR 500 million in pure customer deposits. The marginal dip in 2026 was part of a cost control measure as we remain liquid and adequately funded. Moving over to our equity story, we have seen strong growth in our equity, supported by increased returned earnings and our issuance of Mandatory Convertible Sukuk. Moving over to our profitability profile, we see our operating profit increasing 3.8% year-on-year from June 2025 to June 2026, supported by the increase on the right-hand side on the NFI side and a slight increase in the profit or the financing portfolio. It is worth noting that our NFI has went up 22.7% year-on-year.

Speaker #1: And pure customer deposits—the marginal dip in 2026 was part of a cost control measure, as we remain liquid and adequately funded. Moving over to our equity story, we have seen strong growth in our equity.

Speaker #1: Supported by increased retained earnings and our issuance of mandatory convertible sukuk. Moving over to our profitability profile, we see our operating profit increasing 3.8% year on year from June '25 to June '26.

Speaker #1: Supported by the increase on the right-hand side, on the NFI side, and a slight increase in the profit or the financing portfolio. It is worth noting that our NFI has gone up 22.7% year on year.

Speaker #1: This is again part of the overall enterprise strategy to enhance the bank's non-funded income, and therefore, increase the ROE for the bank and the shareholder value.

Rashad Al Dol: This is again part of the overall enterprise strategy to enhance the bank's non-funded income and, therefore, increasing the ROE for the bank and the shareholder value. On the bottom left-hand side, we look at the operating expenses, which increased 6.8%, which is in line within the industry, and we continue to invest in the bank's infrastructure, digitization efforts, and our people. On the right-hand side, we do witness a decline in our net profit. Nevertheless, this is due to our prudent approach and our risk management strategy. Moving over to our funding and liquidity. When we look at the funding mix of the bank as of June 2026, 79.3% is from customer deposits, which is very healthy and very prudent and showcases the bank's ability and the franchise and the conservative approach to the ALM funding profile.

Salim Rashid Al Maharbi: This is again part of the overall enterprise strategy to enhance the bank's non-funded income and, therefore, increasing the ROE for the bank and the shareholder value. On the bottom left-hand side, we look at the operating expenses, which increased 6.8%, which is in line within the industry, and we continue to invest in the bank's infrastructure, digitization efforts, and our people. On the right-hand side, we do witness a decline in our net profit. Nevertheless, this is due to our prudent approach and our risk management strategy. Moving over to our funding and liquidity. When we look at the funding mix of the bank as of June 2026, 79.3% is from customer deposits, which is very healthy and very prudent and showcases the bank's ability and the franchise and the conservative approach to the ALM funding profile.

Speaker #1: On the bottom left-hand side, we look at the operating expenses, which increased 6.8%, which is in line with the industry. And we continue to invest in the bank's infrastructure, digitization efforts, and our people.

Speaker #1: On the right-hand side, we do witness a decline in our net profit. Nevertheless, this is due to our prudent approach in our risk management strategy.

Speaker #1: Moving over to our funding and liquidity, when we look at the funding mix of the bank as of June 2026, 79.3% is from customer deposits.

Speaker #1: Which is very healthy, and very prudent, and showcases the bank's ability and the franchise, and the conservative approach to the ALM funding profile. Moving over to the Basel III ratios, like the liquidity coverage ratio and the net stable funding ratio, LCR and NSFR.

Rashad Al Dol: Moving over to the Basel III ratios, like the liquidity coverage ratio and the net stable funding ratio, LCR and NSFR, we are at very comfortable levels. It is worth mentioning that the minimum level of Central Bank is 100% for each ratio. As of June, LCR stood at 123% and NSFR at 185%. What does this mean? It means that the bank is liquid, adequately funded, and is well-positioned for future growth. It is also worth mentioning that the CASA for retail banking makes up around 64%, while it makes around 51% for corporate banking. Last but not least, our capital adequacy ratio as of June 2026 is at 14.6%. 14.4% of that is Tier 1 ratio, which is very healthy from a loss absorption and a core capital that is above the minimum CBO limit by 110 basis points or 1.1%.

Salim Rashid Al Maharbi: Moving over to the Basel III ratios, like the liquidity coverage ratio and the net stable funding ratio, LCR and NSFR, we are at very comfortable levels. It is worth mentioning that the minimum level of Central Bank is 100% for each ratio. As of June, LCR stood at 123% and NSFR at 185%. What does this mean? It means that the bank is liquid, adequately funded, and is well-positioned for future growth. It is also worth mentioning that the CASA for retail banking makes up around 64%, while it makes around 51% for corporate banking. Last but not least, our capital adequacy ratio as of June 2026 is at 14.6%. 14.4% of that is Tier 1 ratio, which is very healthy from a loss absorption and a core capital that is above the minimum CBO limit by 110 basis points or 1.1%.

Speaker #1: We're at very comfortable levels. It is worth mentioning that the minimum level set by the central bank is 100% for each ratio. So, as of June, our LCR is at 123% and our SFR at 185%.

Speaker #1: What does this mean? It means that the bank is liquid, adequately funded, and is well positioned for future growth. It is also worth mentioning that the CASA for retail banking makes up around 64%.

Speaker #1: While it makes up around 51% for corporate banking. Last but not least, our capital appreciation ratio as of June 26 is at 14.6%. Of that, 14.4% is tier one ratio.

Speaker #1: Which is very healthy from a loss absorption and a core capital perspective. That is above the minimum CBO limit by 110 basis points, or 1.1%.

Speaker #1: The key message here is that we continue to remain liquid. We pay attention to our capital, and those are the breathing pillars for any commercial bank.

Rashad Al Dol: The key messages here is that we continue to remain liquid, we pay attention to our capital, and those are the breathing pillars for any commercial bank. With here, I conclude my presentation and open the floor for any questions from the audience. Thank you so much.

Salim Rashid Al Maharbi: The key messages here is that we continue to remain liquid, we pay attention to our capital, and those are the breathing pillars for any commercial bank. With here, I conclude my presentation and open the floor for any questions from the audience. Thank you so much.

Speaker #1: With this, I conclude my presentation and open the floor for any questions from the audience. Thank you so much.

Speaker #2: Thank you, Mr. Rashad. Following up on his last point, if anyone has any questions, please feel free to ask.

[Company Representative] (Bank Nizwa): Thank you, Mr. Rashad. Following up on his last point, if anyone has any question, please feel free to ask.

Rashad Al Dohh: Thank you, Mr. Rashad. Following up on his last point, if anyone has any question, please feel free to ask.

Speaker #3: Can you see the number of participants?

Tariq Atiq: Can you see the number of participating?

Azhar Khan: Can you see the number of participating?

Speaker #2: Yes, Mr. Rashad.

Rashad Al Dol: Yes, Mr. Azhar.

Rashad Al Dohh: Yes, Mr. Azhar.

Speaker #4: Hello. Hi.

Azhar Al Kindi: Hello? Hi.

Azhar Khan: Hello? Hi.

Speaker #2: Hi. Yes, we can hear you.

Speaker #4: Yeah, yeah, okay. All right. Related to your five-year plan for the bank, can you please quantify some of the key metrics or your KPIs towards achieving this goal?

Rashad Al Dol: Hi. Yes, we can hear you.

Rashad Al Dohh: Hi. Yes, we can hear you.

Azhar Al Kindi: Yeah. Okay. All right. Related to your five-year plan for the banks, can you please quantify some of the key metrics or your KPIs towards achieving this goal? Example, in terms of your growth, your profitability, your ROE, things like this.

Azhar Khan: Yeah. Okay. All right. Related to your five-year plan for the banks, can you please quantify some of the key metrics or your KPIs towards achieving this goal? Example, in terms of your growth, your profitability, your ROE, things like this.

Speaker #4: For example, in terms of your growth, profitability, ROE—things like this.

Speaker #3: I'm Shiraz Qureshi. So, thank you—thank you so much for that question. Sure. Our financial aspirations, or the key metrics that we aspire to hit or to reach in 2030, are a lot from a balance sheet perspective.

Rashad Al Dol: Financial aspirations. Thank you. Thank you so much for that question. Sure. Our financial aspirations or the key metrics that we aspire to hit or to reach in 2030 are a lot from a balance sheet perspective, there are some from a liquidity funding perspective, and then some from a P&L perspective. From an ROE and ROA perspective, we aim to bring our ratios in line with the industry and to increase it to the level of where we see other peer banks and regional banks operating at. Our main driver for the aspirations or the baseline is the CBO limit for a lot of them, and we continue to build on that and keeping a buffer. We aim, for example, from a balance sheet perspective, to grow at a double-digit CAGR for the next five years.

Salim Rashid Al Maharbi: Financial aspirations. Thank you. Thank you so much for that question. Sure. Our financial aspirations or the key metrics that we aspire to hit or to reach in 2030 are a lot from a balance sheet perspective, there are some from a liquidity funding perspective, and then some from a P&L perspective. From an ROE and ROA perspective, we aim to bring our ratios in line with the industry and to increase it to the level of where we see other peer banks and regional banks operating at. Our main driver for the aspirations or the baseline is the CBO limit for a lot of them, and we continue to build on that and keeping a buffer. We aim, for example, from a balance sheet perspective, to grow at a double-digit CAGR for the next five years.

Speaker #3: There's some from a liquidity funding perspective, and then some from a P&L perspective. One, from an ROE and ROA perspective, we aim to bring our ratios in line with the industry.

Speaker #3: And to increase it to the level where we see other peer banks and regional banks operating at. Our main driver for the aspirations, or the baseline, is the CBO limit for a lot of them.

Speaker #3: And we continue to build on that and keep a buffer. So, we aim, for example, from a balance sheet perspective, to grow at a double-digit CAGR.

Speaker #3: For the next five years, we want our cost-to-income ratio to be in line with the industry and to come down significantly. That’s the story we have seen over the last one to two years.

Rashad Al Dol: We want our cost-to-income ratio to be in line with the industry, to come down significantly, and that's the story that we have seen in the last one to two years, to adopt a more leaner model and a more efficient model and increase revenue. We want our capital adequacy ratio to have ample buffer above the CBO limits. North of 15% is the number that we want to remain at all times. From an efficiency perspective, we want to, from a lending financing ratio, to remain within the CBO limit, and in that sense, to fully optimize our funding profile and deploying it into a profitable asset base.

Salim Rashid Al Maharbi: We want our cost-to-income ratio to be in line with the industry, to come down significantly, and that's the story that we have seen in the last one to two years, to adopt a more leaner model and a more efficient model and increase revenue. We want our capital adequacy ratio to have ample buffer above the CBO limits. North of 15% is the number that we want to remain at all times. From an efficiency perspective, we want to, from a lending financing ratio, to remain within the CBO limit, and in that sense, to fully optimize our funding profile and deploying it into a profitable asset base.

Speaker #3: To be able to adopt a leaner and more efficient model and increase revenue, we want our capital adequacy ratio to have ample buffer above the CBO limit.

Speaker #3: So, north of 15 is the number that we want to remain at, at all times. From an efficiency perspective, we want our lending financing ratio to remain within the CBO limit.

Speaker #3: And that sense, to fully optimize our funding profile and deploy it into a profitable asset base.

Speaker #4: Okay. Thank you.

Azhar Al Kindi: Okay. Thank you.

Azhar Khan: Okay. Thank you.

Speaker #2: Does anyone have any other question or shall we conclude the session? Thank you all for attending. We wish you a good day. Thank you very much.

Rashad Al Dol: Does anyone have any other question or shall we conclude the session? Thank you all for attending, and we wish you a good day. Thank you very much.

Rashad Al Dohh: Does anyone have any other question or shall we conclude the session? Thank you all for attending, and we wish you a good day. Thank you very much.

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Q2 2026 Bank Nizwa SAOG Earnings Call

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