PHOTO
Muscat – Total outstanding credit extended by Oman’s banking sector grew by 3.4% year-on-year to reach RO31.3bn at the end of July 2024, the latest statistics released by the Central Bank of Oman (CBO) showed.
Of the total bank lending, credit to the sultanate’s private sector grew by 3.0% year-on-year to reach RO26.2bn as of July 2024, the CBO said in its monthly statistical bulletin.
Household sector received the highest share of the total private sector credit at approximately 45.1% at end-July 2024, followed by non-financial corporations at 44.9%. The share of financial corporations was 6.3% while other sectors received the remaining 3.6% of total private sector credit.
The growth in total banking sector credit was largely contributed by Islamic banking entities while conventional banks reported moderate growth in lending. The combined balance sheet of conventional banks showed a year-on-year growth of just 1.6% in total outstanding credit as of end-July 2024.
The conventional banks’ credit to the private sector increased by 0.7% to RO20.4bn, while their overall investments in securities surged by 35.8% to RO6bn. The conventional banks’ investment in government development bonds decreased by 6.5% to RO1.9bn, while their investments in foreign securities dramatically increased by 115% to RO2.5bn at the end of July 2024.
By contrast, Islamic banking entities provided total financing of RO6.4bn at the end of July 2024, recording a robust growth of 11% over that a year ago. The total assets of Islamic banks and windows grew by 10.8% on a year-on-year basis to RO7.8bn and constituted about 18.2% of the banking system’s assets at the end of July 2024.
Deposits hit RO31bn mark
The data issued by the central bank indicated that total deposits held with the banking sector registered a robust year-on-year growth of 12.5% to RO31bn at the end of July 2024. Total private sector deposits grew even higher at a 13.9% rate to RO20.7bn.
In terms of the sector-wise composition of private sector deposits, the share of household deposits stood at 49.9%, followed by non-financial corporations at 29.9%, financial corporations at 17.7%, and other sectors at 2.5%.
Aggregate deposits held with Oman’s conventional banks increased by 11.4% year-on-year to RO24.8bn at end-July 2024. The government deposits with conventional banks increased by 1.7% to RO5.4bn. Deposits from public enterprises rose 23.4% to RO1.9bn.
Private sector deposits, which accounted for 65.9% of total deposits with conventional banks, increased by 9.7% as of July 2024 to reach RO16.3bn.
Total deposits held with Islamic banks and windows surged by 17% to RO6.2bn as of July 2024.
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).