Outstanding credit extended by conventional and Islamic banks (other depository corporations) in the Sultanate rose 3 per cent to RO 25.8 billion as of end November 2019, compared to the corresponding figure for 2018, the Central Bank of Oman (CBO) in a review of the performance of the banking sector for the first nine months of last year.
Credit to the private sector increased 2.6 per cent to RO 22.8 billion by end-November 2019, the apex bank stated. Of the total credit to the private sector, the share of the non-financial corporate sector was 46.1 per cent, followed by the household sector (mainly under personal loans) at 45.2 per cent, financial corporations at 5.4 per cent and other sectors the remaining 3.4 per cent.
“The review of the activities of conventional and Islamic banks (other depository corporations) taken together, provides a complete overview of the financial intermediation taking place in the banking system in Oman,” the Central Bank noted.
Total deposits registered a growth of 1.7 per cent to RO 23.2 billion as at the end of November 2019. Private sector deposits of the banking system registered a growth of 2.3 per cent to RO 14.8 billion as at the end of November 2019. Sectorwise, the share of households was 50.5 per cent of the total private sector deposit base, followed by non-financial corporations at 29.5 per cent, financial corporations at 17.7 per cent and the other sectors at 2.3 per cent.
The combined balance sheet of conventional banks denotes an annual growth in total outstanding credit of 1.7 per cent as at the end of November 2019. Credit to the private sector increased by 0.6 per cent to reach RO 19 billion as at the end of November 2019. Conventional banks’ overall investments in securities stood at RO 3.5 billion.
Investment in Government Development Bonds and Government Sukuk increased by 11.2 per cent over the year to RO 1.5 billion at the end of November 2019. Banks also invested RO 318.5 million in Government Treasury Bills as at the end of November 2019. Conventional banks’ investments in foreign securities stood at RO 1.2 billion in November 2019.
Aggregate deposits held with conventional banks increased to RO 19.7 billion in November 2019 from RO 19.5 billion a year ago. Government deposits with conventional banks went down by 1.9 per cent to RO 5.3 billion. Deposits of public enterprises increased by 18.6 per cent to RO 1.3 billion during the same period. Private sector deposits which accounted for 64.8 per cent of total deposits with conventional banks, increased to RO 12.8 billion in November 2019 from RO 12.7 billion a year ago. The core capital and reserves of conventional banks as at the end of November 2019 stood at RO 4.9 billion.
Islamic banking
Islamic banking entities provided financing to the extent of RO 4 billion as at the end of November 2019 when compared to RO 3.5 billion a year ago.
Total deposits held with Islamic banks and windows also increased to RO 3.5 billion in November 2019 from RO 3.2 billion outstanding as at the end of November 2018. The total assets of Islamic banks and Windows combined, amounted to RO 4.8 billion as at the end of November 2019 which constituted about 13.7 per cent of the banking system assets.
