Earlier this month we met with five Omani banks. Key takeaways for Bank Muscat investors: The macro environment remains challenging, but 2018 should look better than 2017. Loan growth will remain in mid-single digits, but with a shift from retail to corporate credit demand. Margins should improve slightly, as higher funding costs are passed on to corporate borrowers. The cost/ income ratios should improve very slightly. The asset quality outlook is broadly stable (with any problems focused on expat/ low income retail exposures), but the cost of risk could trend higher as the flow of provision recoveries ebbs.