Oman’s listed lenders have reported mixed full-year 2016 results after operating expenses rose for some of the lenders in what was a tough year for the sultanate amid sluggish economy on the back of the falling oil prices.

Bank Muscat, one of the top lenders in the country, reported a flat bottom-line for full-year 2016 with net income rising only 0.6 per cent to RO176.56m ($459.2m) compared to RO175.45m for the same period reported in 2015.

Net interest income from conventional banking and income from Islamic financing stood at RO274.15m for the year, up from RO260.51m in 2015, however, non-interest income dropped by 3.5 per cent to RO142.03m at the end of 2016, the lender said in a statement to Muscat Securities Market, where its shares are traded.

The net profit was also affected by a rise in operating expenses and a reduction in the share of income from associates, which stood at RO1.73m against RO2.56m for the same period in 2015. Operating expenses for 2016 reached RO174.08m, a 1.8 per cent increase from RO171.06m reported for the same period in 2015.

Loans and advances, however, saw growth last year, rising by 6.1 per cent to RO7.1bn against RO6.7bn as at 31 December 2015. Customer deposits shrank by 0.6 per cent to RO6.7bn in 2016 compared to RO 6.7bn for the same period a year earlier.

Net income for Bank Dhofar also recorded a moderate increase of 1.83 per cent. The lender reported a 12-month profit of RO47.62m at the end of 2016, rising from RO46.76m.

Operating expenses jumped by 10.9 per cent to RO56.8m last year, up from RO51.2m from a year earlier, according to a Bank Dhofar bourse filing on 15 January.

HSBC Bank Oman, on the other hand, saw a profit growth of 31 per cent, as the bank managed to reduce its operating expenses. The lender reported 12-month 2016 profit of RO16.9m, rising from RO12.9m at the end of 2015, while its operating expenses fell 11 per cent to RO48.4m from RO54.7m for the same period.

Ahli Bank, also reported bottom-line growth as it managed to reduce operating expenses.

The bank reported a full-year profit of RO29.6m at the end of last year, up 6.9 per cent from 27.7 per cent, while expenses dropped 5.4 per cent to 19.2 per cent at the end of the 2016.

The lender, however, recorded a 2.3 per cent drop in customers deposits to OR1.3bn at the end of 2016, while its operating income also shrank by 4.3 per cent to RO53.6m for the same period.

Shariah-compliant Alizz Bank reported a loss of 11.2 per cent for the 12-month period of 2016 to RO4.72m, down from RO5.35m after its operating expenses grew by 18.9 per cent to RO12.65m in 2016 from RO10.64 from a year earlier period, according to its bourse filing.

National Bank of Oman, on 12 January said that its net income has also dropped by 7.2 per cent to RO55.8m at the end of 2016, down from RO60.am from a year-earlier period. Its share from other income also shrank by 15 per cent to RO34.5m, while operating expenses grew by 4.5 per cent to RO62.7m, it said in a statement to the bourse.