"In continuation of Global Investment House coverage of the Omani Banks, we have come out with a sector update on Omani Banking Sector.
The roller coaster ride that was year 2008, provided mixed results for the Omani banks. The Omani economy is expected to a register an estimate 3.5% real GDP growth in 2008. The ministry of national economy commented in its 2009 budget that it would continue to grow, however at a lower rate of 1% in 2009. Though, the current economic environment presents numerous challenges ahead, the enhanced spending by the government (leading to a RO800mn budget deficit for 2009) and the eco-political stability should help tide over this crisis. In the medium term however, we are positive on the sector considering its relative insulation to the real estate sector exposure and lower loan losses unlike its counterparts in the GCC region. The combined profits of the listed Omani banks increased by 9.2% in 2008 from RO179.5mn in 2007 to RO195.9mn.
In order to view the full report, kindly click on the headline."
No comments:
Post a Comment