MUSCAT, DEC 14 - The price of Oman crude averaged $64.1 per barrel during the first ten months of 2019, which was lower by 5.3 per cent over the corresponding period of last year, the Central Bank of Oman (CBO) stated in its monthly review of banking and monetary developments for the month of October 2019. Average daily oil production decreased marginally by 0.4 per cent to 970.9K barrels during this period, the apex bank stated in its newly published review. Preliminary national accounts data for Oman indicate that the nominal GDP declined by 1.9 per cent during the first half of 2019 compared to the same period last year.
“The decline was reflected primarily in the non-petroleum sector with a fall of 3.4 per cent and the petroleum sector grew in nominal terms by 2.1 per cent,” the Central Bank noted. Inflationary conditions remained benign as the retail inflation averaged 0.2 per cent during January-October 2019 in comparison with 0.9 per cent during the same period of last year, it said. The total outstanding credit extended by Other Depository Corporations (conventional and Islamic banks) stood at RO 25.9 billion as at the end of October 2019, a rise of 3.9 per cent over the level witnessed a year ago. Credit to the private sector increased by 3.4 per cent to RO 22.8 billion as at the end of October 2019.
“Of the total credit to the private sector, the nonfinancial corporate sector stood at 46.2 per cent, followed by the household sector (mainly under personal loans) at 45.1 per cent, financial corporations at 5.3 per cent and other sectors the remaining 3.4 per cent,” the report said.
Total deposits registered a growth of 3.1 per cent to RO 23.2 billion as at the end of October 2019. Private sector deposits of the banking system registered a growth of 5.8 per cent to RO 15 billion as at the end of October 2019. Sector-wise, the share of households was 49.6 per cent of the total private sector deposit base, followed by nonfinancial corporations at 30.5 per cent, financial corporations at 17.7 per cent and the other sectors at 2.2 per cent.
There was an annual growth in total outstanding credit of 2.5 per cent as at the end of October 2019, according to the Central Bank. Credit to the private sector increased by 1.3 per cent to reach RO 19 billion as at the end of October 2019. Conventional banks’ overall investments in securities stood at RO 3.6 billion as at the end of October 2019.
Investment in Government Development Bonds and Government Sukuk increased by 6.4 per cent over the year to RO 1.5 billion at the end of October 2019. Banks also invested RO 299.2 million in Government Treasury Bills as at the end of October 2019. Conventional banks’ investments in foreign securities stood at RO 1.2 billion in October 2019. Aggregate deposits held with conventional banks increased by 2.5 per cent to RO 19.8 billion in October 2019 from RO 19.3 billion a year ago. Government deposits with conventional banks amounted to RO 5.2 billion.
Islamic banking entities provided financing to the extent of RO 3.9 billion as at the end of October 2019 when compared to RO 3.5 billion a year ago. Total deposits held with Islamic banks and windows also registered a significant increase to RO 3.4 billion in October 2019 from RO 3.2 billion outstanding as at the end of October 2018.
The total assets of Islamic banks and Windows combined, amounted to RO 4.8 billion as at the end of October 2019 which constituted about 13.8 per cent of the banking system assets.
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