The total outstanding credit extended to banks in Oman by other depository corporations stood at OMR23.3 billion at the end of October 2017, registering a growth of 6.2 per cent over the same period in 2016.
The banking sector in Oman continued to witness reasonable growth in both credit and deposits. The combined balance sheet 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.
Credit to the private sector increased by 5.8 per cent to OMR20.8 billion at the end of October 2017. Of the total credit to the private sector, the household sector (mainly under personal loans) stood at 46.5 per cent, closely followed by the non-financial corporate sector at 45.3 per cent, while financial corporations and other sectors received 5 per cent and 3.2 per cent, respectively.
Total deposits registered a growth of 4.8 per cent to OMR21.5 billion, with private sector deposits growing by 6.4 per cent to OMR13.9 billion at the end of October 2017.
A review of the activities of conventional banks indicates an annual growth in the total outstanding credit of 3.6 per cent, as of the end of October 2017. Credit to the private sector increased by 3 per cent to OMR18.1 billion.
Conventional banks’ overall investments in securities grew by 3.2 per cent to OMR3 billion. The investment in government treasury bills stood at OMR504.6 million at the end of October 2017. The investment in government securities, inclusive of government development bonds (GDBs), government Sukuk and others, marginally declined by 1.3 per cent over the year to OMR1.3 billion. Aggregate deposits held with conventional banks increased by 1.6 per cent to OMR18.6 billion in October 2017, from OMR18.3 billion a year ago.
Government deposits with conventional banks declined by 3.2 per cent to OMR4.9 billion, while deposits of public enterprises decreased by 10.5 per cent to OMR0.9 billion during the same period. Private sector deposits, which accounted for 66.9 per cent of the total deposits with conventional banks, increased by 4.1 per cent to OMR12.5 billion in October 2017, from OMR12 billion a year ago. The core capital and reserves of conventional banks, as of the end of October 2017, stood at OMR4.2 billion.
Islamic banking entities provided financing to the extent of OMR2.9 billion, as of the end of October 2017, compared with the OMR2.3 billion a year ago. The total deposits held with Islamic banks and windows also registered a significant increase to OMR2.9 billion in October 2017, from OMR2.2 billion at the end of October 2016. The total assets of Islamic banks and Windows combined, amounted to OMR3.7 billion at the end of October 2017, constituting about 11.9 per cent of the banking system assets.