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Outstanding Credit Extended by Depository Corporations Stands at RO23.3 billion.

Muscat, Dec.30 (ONA) ---- 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.

The total outstanding credit extended by other depository corporations stood at RO23.3 billion as at the end of October 2017, a growth of 6.2 percent over the level witnessed a year ago.

Credit to the private sector increased by 5.8 percent to RO20.8 billion as 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 percent closely followed by the non-financial corporate sector at 45.3 percent, while financial corporations and other sectors obtained 5 percent and 3.2 percent, respectively.

Total deposits registered a growth of 4.8 percent to RO21.5 billion, with private sector deposits growing by 6.4 percent to RO13.9 billion as at the end of October 2017.

Sector-wise, the contribution of households in total private sector deposits was 48.1 percent, followed by non-financial corporations at 29.2 percent, financial corporations at 19.7 percent, and the other sectors at 3 percent.

Review of the activities of conventional banks indicates an annual growth in total outstanding credit of 3.6 percent as at the end of October 2017. Credit to the private sector increased by 3 percent to

RO18.1 billion.

Conventional banks' overall investments in securities grew by 3.2 percent to RO3 billion. Investment in Government Treasury Bills stood at RO504.6 million at the end of October 2017. Investment in Government securities inclusive of GDBs, Government Sukuk, and others marginally declined by 1.3 percent over the year to RO1.3 billion. Aggregate deposits held with conventional banks increased by 1.6 percent to

RO18.6 billion in October 2017 from RO18.3 billion a year ago.

Government deposits with conventional banks declined by 3.2 percent to RO4.9 billion, while deposits of public enterprises decreased by 10.5 percent to RO0.9 billion during the same period. Private sector deposits which accounted for 66.9 percent of total deposits with conventional banks, increased by 4.1 to RO12.5 billion in October 2017 from RO12.0 billion a year ago. The core capital and reserves of conventional banks as at the end of October 2017 stood at RO4.2 billion.

Islamic banking entities provided financing to the extent of RO2.9 billion as at the end of October 2017 as compared to RO2.3 billion a year ago. Total deposits held with Islamic banks and windows also registered a significant increase to RO2.9 billion in October 2017 from RO2.2 billion as at the end of October 2016. The total assets of Islamic banks and Windows combined, amounted to RO3.7 billion as at the end of October 2017, constituting about 11.9 percent of the banking system assets.

--- Ends/AH/FS

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Publication:Oman News Agency
Geographic Code:7OMAN
Date:Dec 30, 2017
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