BUSINESS REPORTER
The total outstanding credit extended by other depository corporations (ODCs) — representing conventional and Islamic banks in the Sultanate of Oman — grew by 4.5 per cent to reach RO 28.3 billion at the end of May 2022, the Central Bank of Oman (CBO) stated in its latest review of banking and monetary developments. Credit to the private sector demonstrated a slight increase of 1.8 per cent (Y-o-Y) to reach RO 23.6 billion, it noted.
Non-financial corporations received the highest shares of the total private sector credit, at approximately 45.6 per cent at end of May 2022, followed by the household sector at 45.4 per cent.
The share of financial corporations was 5.3 per cent while other sectors received the remaining 3.6 per cent of total private sector credit as at end of May 2022.
Total deposits held with ODCs registered a Y-o-Y growth of 3.2 per cent to reach RO 25.9 billion at the end of May 2022. Total private sector deposits decreased by 1.0 per cent to RO 17.2 billion. In terms of sector-wise composition of private sector deposits, the biggest contribution is from household deposits at 52.7 per cent, followed by non-financial corporations at 29.5 per cent, financial corporations at 14.9 per cent and other sectors at 2.9 per cent.
The combined balance sheet of conventional banks showed a Y-o-Y growth of 3.3 per cent in total outstanding credit as of end of May 2022. Credit to the private sector increased by 0.9 to reach RO 19.1 billion while their overall investments in securities went up by 4.1 per cent to RO 4.9 billion at end of May 2022.
Investment in Government Development Bonds decreased by 2.6 per cent compared to the same period last year to RO 2.1 billion while their investments in foreign securities declined by 11.6 per cent to RO 0.73 billion at the end of May 2022. On the liabilities side, aggregate deposits held with the conventional banks increased by 1.5 per cent Y-o-Y to RO 21.3 billion at end of May 2022.
The government deposits with conventional banks witnessed an increase of 15.9 per cent at RO 5 billion, and deposits of public enterprises increased by 13.0 per cent to RO 1.6 billion. Private sector deposits, which accounted for 66.8 per cent of total deposits with conventional banks, decreased by 3.5 per cent as of May 2022 to reach RO 14.2 billion.
The total assets of Islamic Banks and Windows increased by 9.4 per cent on a Y-o-Y basis to RO 6.1 billion and constituted about 15.7 per cent of the banking system’s assets with a growth of 9.4 per cent at end of May 2022. Islamic banking entities provided financing of RO 5 billion at the end of May 2022, recording a growth of 10.5 per cent over that a year ago. Total deposits held with Islamic banks and windows increased by 11.8 per cent to RO 4.6 billion.
The nominal GDP, as per preliminary data released by National Centre for Statistics and Information (NCSI), showed an increase of 25.7 per cent at the end of May 2022 compared to the same period of 2021. The expansion was driven by an increase in the output of the hydrocarbon sector by 69.0 per cent and non-hydrocarbon sector by 8.9 per cent.
The Omani oil average price during January-May 2022 at $80 per barrel was higher by 46 per cent than that in January-May 2021. The average daily oil production at 1,042.8 thousand barrels during January-May 2022 increased by 9.4 per cent.
Oman’s average Consumer Price Index (CPI) showed a Y-o-Y inflation of 3.4 per cent during the period January-May 2022.
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