Banking sector credit climbs to RO 27.9 billion in Q1 of 2022

Total outstanding credit extended by conventional and Islamic banks (collectively referred to as Other Depository Corporations – ODCS) grew by 2.8 per cent to RO 27.9 billion at the end of March 2022, while credit to the private sector demonstrated a slight increase of 0.7 per cent (Y-O-Y) to reach RO 23.5 billion, the Central Bank of Oman (CBO) stated in its latest monthly report.

Non-financial corporations and the household sector received the highest shares of the total private sector credit, at approximately 45.4 per cent each. The share of financial corporations was 5.4 per cent and other sectors received the remaining 3.8 per cent of the total private sector credit as at end-march 2022.

Total deposits held with ODCS registered a Y-O-Y growth of 4.7 per cent to reach RO 25.9 billion at the end of March 2022. Total private sector deposits increased by 2.4 per cent to RO 17.5 billion.

In terms of the sector-wise composition of private sector deposits, the biggest contribution is from household deposits at 51.9 per cent, followed by nonfinancial corporations at 30.2 per cent, financial corporations at 15 per cent and other sectors at 0.8 per cent.

The combined balance sheet of conventional banks showed a Y-O-Y growth of 1.4 per cent in total outstanding credit as of endmarch 2022. Credit to the private sector decreased by 0.3 to reach RO 19 billion while their overall investments in securities went up by 13.5 per cent to RO 5.2 billion at end- March 2022.

Investment in Government Development Bonds increased by 14.6 per cent compared to the same period last year to RO 2.1 billion while their investments in foreign securities declined by 18.6 per cent to RO 0.790 billion at the end of March 2022. On the liabilities side, aggregate deposits held with the conventional banks increased by 3.4 per cent Y-O-Y to RO 21.5 billion at end-march 2022.

Government deposits with conventional banks witnessed an increase of 9.7 per cent at RO 4.9 billion and deposits of public enterprises increased by 16.2 per cent to RO 1.5 billion. Private sector deposits, which accounted for 68.3 per cent of total deposits with conventional banks, increased by 0.4 per cent as of March 2022 to reach RO 14.7 billion.

The total assets of Islamic Banks and Windows increased by 10.7 per cent on a Y-O-Y basis to RO 6 billion and constituted about 15.4 per cent of the banking system’s assets as at end- March 2022.

Islamic banking entities provided financing of RO 4.9 billion at the end of March 2022, recording a growth of 9.6 per cent over that a year ago. Total deposits held with Islamic banks and windows increased by 11.7 per cent to RO 4.5 billion.