Oman's banking credit ticks up to $68.5bln in September

Total private sector deposits increased 9.5% to $42.6bln by the end of September 2020

Image used for illustrative purpose.

Image used for illustrative purpose.


Total outstanding credit extended by conventional and Islamic banks in the Sultanate (together known as other depository corporations or ODCs) grew 2.1 per cent to RO 26.4 billion by September 30, 2020, according to the Central Bank of Oman (CBO).

Credit to the private sector rose 0.3 per cent Y-o-Y to RO 22.8 billion, the apex bank noted in its latest report on banking and monetary developments during September 2020.

Of the total credit to the private sector, the non-financial corporate sector and the household sector (mainly under personal loans) accounted for respective shares of 46.3 per cent and 45.1 per cent, while financial corporations received a 5.1-per cent share.

Total deposits held with ODCs reached RO 24.3 billion at the end of September 2020, up 5 per cent from the corresponding figure of September 2019.

Total private sector deposits increased 9.5 per cent to RO 16.4 billion by the end of September 2020.

A sector-wise analysis of private sector deposits shows that households contributed the largest share (51.2 per cent), followed by non-financial corporations (31.7 per cent), financial corporations (14.5 per cent) and the other sectors (2.6 per cent).

The combined balance sheet of conventional banks indicates a Y-o-Y growth of 1.3 per cent in total outstanding credit as of end-September 2020. Conventional bank credit to the private sector decreased marginally by 1.1 per cent to RO 18.7 billion. Conventional banks’ overall investments in securities amounted to RO 4 billion.

Investment in Government Development Bonds increased 19.5 per cent over the year to RO 1.8 billion.

Banks also invested RO 306.8 million in Government Treasury Bills, while their investments in foreign securities stood at RO 1 billion at the end of September 2020. Aggregate deposits held with conventional banks increased to RO 20.5 billion in September 2020, registering a growth of 4.5 per cent over the level a year ago, the report noted.

Government deposits with conventional banks decreased 13.8 per cent to RO 4.6 billion, while deposits of public enterprises increased 20.1 per cent to RO 1.3 billion. Private sector deposits, which accounted for 70 per cent of total deposits with conventional banks, increased 10.2 per cent to RO 14.1 billion.

Islamic banking entities provided financing of RO 4.2 billion as of end-September 2020, recording a growth of 6.7 per cent over.

Total deposits held with Islamic banks and windows increased 7.7 per cent to RO 3.7 billion. The total assets of Islamic Banks and Windows increased to RO 5 billion and constituted about 14 per cent of the banking system’s assets by the end of September 2020.

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