Global Arab Network | Oman: 8.6 % increase in commercial banks assets | Finance

Total assets of commercial banks increased by 8.6 % to RO 15,685.2 million at the end of January 2011 compared to RO 14,449.6 million in January 2010. Cash on hand and deposits of commercial banks with the CBO declined to RO 678.9 million at the end of January 2011 compared to RO 1,003.5 million in January 2010. Total outstanding credit increased to RO 10,754.3 million at the end of January 2011 and accounted for 68.6 percent of total assets. On a year-on-year basis, credit growth was 8.1 percent as at the end of January 2011 compared to 6.7 percent in the previous year. While credit to Government declined by 57.3 percent due to higher realization of oil price in international markets, credit to public enterprises and the private sector increased by 66.6 percent and 5.4 percent, respectively.

Commercial banks' overall investments in securities increased by 41.2 percent to RO 2,204.4 million at the end of January 2011 from RO 1,561 million a year ago. Outstanding investments in CBO CDs increased to RO 1,535.8 million in January 2011 from RO 1,118.9 million in January 2010. Investments in foreign securities also increased by 26.8 percent to RO 203.3 million at the end of January 2011 from RO 160.3 million during the same period in 2010. Commercial banks' investment in government development bonds increased to RO 286.1 million in January 2011 compared to RO 144.1 million in January 2010.

On the liabilities side of the balance sheet, aggregate deposits (Rial Omani plus foreign currency) witnessed a year-on-year growth of 13 % to RO 10,558.6 million at the end of January 2011 from RO 9,345.9 million in January 2010. Government deposits with commercial banks increased by 23.1 percent to RO 2,308.5 million, and deposits of public enterprises rose by 18.4 percent to RO 904.1 million during the same period. Private sector deposits with commercial banks registered an increase of 8.8 percent to RO 7,229.4 million by the end of January 2011 from RO 6,646.8 million a year ago. For the first month of the year, provisional figures for net profits stood higher at RO 22.1 million at the end of January 2011 compared to RO 20.8 million a year ago.