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Bank lending in Oman rises 5.2% in October; deposits jump 10%


Muscat – Total bank lending in Oman grew by more than five per cent in the first ten months of 2023 while deposits jumped by more than 10 per cent as compared to the same period of 2022, according to the Central Bank of Oman.

Total outstanding credit extended by the sultanate’s banking sector (both conventional and Islamic banks) grew by 5.2% to RO30.4bn as of October 2023 against the same month of the previous year, the CBO said in its monthly statistical bulletin.

Of the total outstanding credit, bank credit to the private sector demonstrated increased growth of 6.2% year-on-year to reach RO25.6bn in October. Non-financial corporations received the highest shares of the total private sector credit, at approximately 45.7%, followed by household sector at 44.6%. The share of financial corporations was 5.8% while other sectors received the remaining 3.7% of total private sector credit.

Conventional banks’ total outstanding credit grew by 3.6% year-on-year in October this year. Conventional banks’ credit to the private sector increased 4.9% to RO20.3bn while their overall investments in securities increased by 6.4% to RO4.7bn, the CBO data showed.

Banks’ investment in government development bonds decreased by 7.7% year-on-year to RO1.9bn in October, while their investments in foreign securities dramatically rose by 64.8% to RO1.4bn.

On the other hand, total banking sector deposits in Oman grew by 10.1% to RO28.2bn at the end of October 2023 against the same period a year ago.

Total private sector deposits increased by 8.8% to RO18.6bn. In terms of sector-wise composition of private sector deposits, the biggest contribution was from household deposits at 50.5%, followed by non-financial corporations at 31.3%, financial corporations at 15.3% and other sectors at 2.9%.

Aggregate deposits held with the conventional banks increased by 9.9% year-on-year to RO22.9bn at end-October 2023. Private sector deposits, which accounted for 66.2% of total deposits with conventional banks, increased by 8.1% as of October 2023 to reach RO15.2bn.

Government deposits with conventional banks witnessed an increase of 4.2% at RO5.2bn and deposits of public enterprises increased by 37.8% to RO1.8bn.

Islamic assets reach RO7.1bn

Total assets of Islamic banks and windows in Oman increased by 11.6% on a year-on-year basis to reach RO7.1bn at the end of October 2023.

Islamic assets now constitute about 17.4% of the total banking system assets in Oman as of the end-October 2023.

Islamic banking entities provided financing of RO5.9bn at the end of October 2023, recording a growth of 12.1% over that a year ago. Total deposits held with Islamic banks and windows increased by 10.7% to RO5.2bn.

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