Recording a robust year-on-year growth, Islamic banking entities provided total financing of RO2.6bn as at the end of March 2017 compared to RO1.9bn a year ago, according to the monthly statistical bulletin released by the Central Bank of Oman (CBO) on Sunday.
Total deposits held with Islamic banks and windows also registered a strong growth to reach RO2.4bn in March 2017 from RO1.7bn outstanding as at the end of March 2016.
The combined balance sheet of conventional and Islamic banks taken together, provides a complete overview of the financial intermediation taking place in the banking system in Oman, the CBO said.
‘With oil prices continuing to remain low, economic activity in the sultanate remained subdued’, the central bank noted.
It said the financial position of the banks in Oman in terms of asset quality, provision coverage, capital adequacy and profitability remained sound.
The gross non-performing loans as a proportion of total loans and advances stood at 2.1 per cent at the end of December 2016.
Conventional banks’ total outstanding credit grew 3.5 per cent at the end of March 2017 compared to a year ago. Credit to the private sector increased by 6.3 per cent to RO17.8bn as at the end of March 2017.
Aggregate deposits held with conventional banks increased by 4.3 per cent to RO19bn in March 2017 from RO18.2bn a year ago. Government deposits with conventional banks went up by nine per cent to RO5.2bn, while deposits from public enterprises declined by 16.5 per cent to around RO900mn during the same period.
Private sector deposits, which accounted for 66.1 per cent of total deposits with conventional banks, increased by 4.6 per cent to RO12.6bn in March 2017 from RO12bn a year ago.