There is no doubt that the nature of the bank is a very old institution that contributes to the development of any economy and is treated as an important service industry in the modern world. At present, the Bank’s function is not limited to the same geographical limit as any country. It is an important source of funding for most companies. The common assumption, which supports many financial performance research and discussions, is that increased financial performance will improve the functions and activities of organizations. It is worth noting that financial performance is the process of using the financial statement to determine the profitability, efficiency, operation and financial characteristics of the company. We recognize that an institution’s ability to analyse and evaluate financial performance is necessary to improve its competitive position in the market, so organizations must do their best to improve the performance of their departments. It is known that financial analysis means analysing financial data using some tools such as profitability and company efficiency. Is to evaluate the relationship between the contents of the financial statement to obtain a better knowledge of the position of the institution and its validity and weakness.
Economic liberalization, , major infrastructure developments, accelerated privatization program, inflow of foreign direct investment, favourable demographic composition with strong population growth and a high percentage of young people are the drivers of bank growth. .
Oman’s banking industry is known to have seven local banks operating in Oman such as National Bank of Oman SAOG, Oman Arab Bank SAOG, Oman International Bank SAOG, Bank Muscat SAOG, Bank Al-Ahli Bank SAOG, Bank Dhofar SAOG and Sohar Bank SAOG.
Commercial Bank is a trading company seeking to profit dealing in money , credit. It is a financial institution dealing in money in the sense that the investor accepts money deposition. The term “bank” is defined as the person or institution that receives itself from the general deposits payable on demand from the cheese. The Bank’s goal of rewarding the CEO and other executives is to provide basic pay as well as rewards associated with performance and other benefits that attract executives. The Bank provides individual performance with a level of income:
• Recognition of the market value of each position in a competitive market;
• Rewards of the individual’s abilities and experience.
• Recognition of individual performance. And
• Helps maintain the executive.
The Bank is committed to providing all shareholders with universal and equal access to information related to the Bank’s activities and to fulfilling our continued disclosure obligations to the wider market, including the CBO, CMA, and Muscat Securities Market. The Bank’s website includes annual reports, quarterly financial statements, briefings and presentations by the CEO, other executives, public advertising and economic updates.
Through this study, the researcher compares the selected local banks, namely National Bank and Bank Sohar, which works in the Sultanate of Oman in financial performance.