Banking sector credit rises 5.4% to RO 27.8 billion

@JmObserver –

Credit extended by conventional and Islamic banks (collectively known as Other Depository Corporations or ODCs grew 5.4 per cent to RO 27.8 billion at the end of November 2021, the Central Bank of Oman (CBO) announced here on Wednesday. Credit to the private sector alone grew a modest 2.3 per cent (Y-o-Y) to reach RO 23.4 billion, the apex bank stated in its latest monthly report.

The non-financial corporate sector, with a 46.5 per cent share, received the highest share of the total private sector credit, followed by the household sector (45.2 per cent), financial corporations (4.7 per cent) and other sectors (3.6 per cent).

Total deposits held with ODCs registered a Y-o-Y growth of 5.7 per cent to reach RO 25.4 billion at the end of November 2021. Total private sector deposits increased by 5.3 per cent to RO 17.3 billion. In terms of sector-wise composition of private sector deposits, the biggest share goes to household deposits at 51.2 per cent, followed by non-financial corporations (31.7 per cent), financial corporations (14.2 per cent) and other sectors (2.9 per cent).

The combined balance sheet of conventional banks showed a Y-o-Y growth of 4.0 per cent in total outstanding credit as of end-November 2021, according to the CBO. Credit to the private sector increased by 1.8 to reach RO 19.1 billion while their overall investments in securities went up by 21.6 per cent to RO 5.2 billion as of end-November 2021.

Investment in Government Development Bonds increased by 20.9 per cent compared to the same period last year to RO 2.2 billion while their investments in foreign securities declined by 25.8 per cent to RO 0.803 billion. Aggregate deposits held with the conventional banks increased by 3.6 per cent Y-o-Y to RO 21.0 billion at end-November 2021. Government deposits with conventional banks witnessed an increase of 7.5 per cent at RO 4.7 billion. Similarly, deposits of public enterprises went up by 5.5 per cent to RO 1.2 billion. Private sector deposits, which accounted for 69.3 per cent of total deposits with conventional banks, increased by 2.8 per cent to reach RO 14.6 billion.

Islamic banking entities provided financing totaling RO 4.8 billion as of end-November 2021, recording a growth of 13.1 per cent y-o-y. Total deposits held with Islamic banks and windows increased by 16.8 per cent to RO 4.4 billion. The total assets of Islamic Banks and Windows increased by 13.1 per cent on a Y-o-Y basis to RO 5.8 billion and constituted about 15.2 per cent of the banking system’s assets.