Assets of Oman’s conventional banks reach OMR29 billion in September

MUSCAT: A review of the activities of conventional banks showed that their total assets stood at OMR29.1 billion in September 2018, increasing by 4.3 per cent over that of December 2017 and 5.5 per cent over that of a year ago, according to the bulletin issued by the Central Bank of Oman (CBO).

The total credit disbursement amounted to OMR21.4 billion at the end of the third quarter of 2018 and constituted 73.3 per cent of the total assets.

Private sector credit increased year-on-year (YoY) by 3.4 per cent to OMR18.7 billion in September 2018, accounting for 87.8 per cent of the total credit of conventional banks.

The sector-wise credit distribution showed that of the total credit extended to the private sector, the share of the non-financial corporate sector was 46.7 per cent, followed by the household sector with 44.7 per cent, and financial corporations and other sectors with 6.2 per cent and 2.3 per cent respectively. Securities, the second major component of the banks’ assets, increased by 1.8 per cent to OMR3.3 billion in September 2018.

Among the investment in securities, Government Development Bonds and Government Sukuk increased YoY by 20.3 per cent to OMR1.4 billion at the end of September 2018. Banks also invested OMR257.1 million in Government Treasury Bills as of the end of September 2018. Conventional banks’ investments in foreign securities stood at OMR1.2 billion in September 2018.

The ratio of total foreign assets to total assets worked out at 10.2 per cent, while foreign liabilities to total liabilities stood at 12.5 per cent as of the end of September 2018. Oman (CBO). Government deposits with conventional banks increased by 7.8 per cent to OMR5.4 billion, while public enterprises’ deposits increased by seven per cent to OMR1.2 billion in September 2018. Private sector deposits accounted for 64.3 per cent of total deposits with conventional banks in September 2018, remaining similar to what they were a year ago at OMR12.4 billion.

In terms of maturities, demand, saving and time deposits contributed OMR3.7 billion, OMR4.4 billion, and OMR4.0 billion, respectively, to total private sector deposits.