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Bank lending up 4 per cent in February; deposits rise 5 per cent

17 Apr 2021

The total outstanding credit extended by Oman’s banking sector grew by 4 per cent to RO26.9bn at the end of February 2021 compared to the same period a year ago, according to the monthly statistical bulletin issued by the Central Bank of Oman (CBO).

Of the total outstanding credit, private sector accounted for RO23.1bn of total banking sector credit in February this year and registered a modest year-on-year credit growth of 1.4 per cent. 

The shares of non-financial corporate sector and the household sector (mainly under personal loans) in total private sector credit stood at 46.7 per cent and 45.2 per cent, respectively. 

The share of financial corporations was 4.8 per cent and other sectors received the remaining 3.3 per cent of total private sector credit as of end-February 2021.

As per the CBO data, Oman’s conventional banks recorded an year-on-year credit growth of 2.9 per cent as of end-February 2021. Islamic banking entities, on the other hand, provided financing of RO4.4bn at the end of February 2021, recording a growth of 9.9 per cent.

The CBO data showed that total deposits held with the banking sector grew by 5 per cent to RO24.8bn at the end of February 2021. Of total deposits, private sector deposits increased by 10.7 per cent to RO17bn.

In terms of sector-wise composition of private sector deposits, the share of households deposits stood at 51 per cent, followed by non-financial corporations at 32.4 per cent, financial corporations at 14.1 per cent and the other sectors at 2.5 per cent.

Aggregate deposits held with the conventional banks increased by 4.1 per cent year-on-year to RO20.9bn at end- February 2021. 

Total deposits held with Islamic banks and windows increased by 10 per cent to RO3.8bn.

Total assets of Islamic banks and windows increased by 11 per cent on a year-on-year basis to RO5.4bn and constituted about 14.5 per cent of the banking system’s assets as at end-February 2021.

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