Oman banks show growth amid downturn

The banking system in Oman has been shielded from the adverse impact of the global crisis and continue to show growth, according to latest figures.

The combined balance sheet of commercial banks continued to register growth in assets/liabilities at the end of May 2009.

On a year-on year basis, total assets increased by 15.4 percent in May to reach RO13.7bn ($35.5bn) in comparison to its level a year ago driven by the growth in credit of 23.6 percent, Oman News Agency reported on Wednesday.

Total credit stood at RO9.5bn as at the end of May 2009 compared to RO7.7bn at the end of May 2008.

However the pace of credit growth has slowed from 38.4 percent in January to 23.6 percent in May, the Central Bank report shows.

Assets held in the form of cash and deposits with the Central Bank of Oman (CBO) stood at RO857.9 million at the end of May, which was significantly higher than the required reserves to be held with CBO - indicating excess liquidity with commercial banks.

On the liabilities side, commercial banks' aggregate deposits increased by 14.4 percent to RO8.6bn at the end of May but annual growth in total deposits slowed from 27 percent in January to 14.4 percent in May.

READERS' COMMENTS

MORE FROM ARABIANBUSINESS.COM