Commercial banks in Oman continue to see growth in total deposits, with a 10.2 percent increase to reach OMR24.4 billion by the end of March 2024. Government deposits with banks increased by 2.8 percent to OMR5.2 billion, while public sector institution deposits rose by 38.1 percent to OMR2.5 billion during the same period. Private sector deposits also saw a significant increase, rising by 9.7 percent to OMR16 billion, making up 65.7 percent of total deposits with traditional commercial banks.
From March 2023 to March 2024, traditional commercial banks in Oman saw a 0.8 percent increase in total credit granted. Credit granted to the private sector increased by 1.6 percent to reach OMR20.3 billion by the end of March 2024. Additionally, total investments in securities by traditional commercial banks rose by 28.0 percent to approximately OMR5.7 billion. However, investment in government development bonds (GDBs) decreased by 17.1 percent compared to the previous year, reaching OMR1.8 billion. Investments in foreign securities saw a substantial increase of 139.0 percent to reach OMR2.3 billion by the end of March 2024.
The report issued by the Central Bank of Oman (CBO) highlights the significant growth in total deposits and credit granted by commercial banks in the Sultanate. This growth reflects a positive trend in the banking sector in Oman, with private sector deposits increasing significantly. The increase in total investments in securities, particularly in foreign securities, indicates a diversification strategy by traditional commercial banks in Oman to optimize their investment portfolios.
It is evident that traditional commercial banks in Oman are actively engaging in managing their deposit base, credit portfolio, and investments to achieve sustainable growth. The increase in government deposits, public sector institution deposits, and private sector deposits showcases a well-rounded approach by commercial banks in the Sultanate. The growth in credit granted to the private sector further indicates support for economic activities and investment opportunities in Oman.
The rise in total investments in securities, especially in foreign securities, suggests a strategic move by traditional commercial banks in Oman to explore new markets and diversify their investment portfolio. This diversification strategy could potentially result in higher returns for the banks while mitigating risk. The decrease in investment in government development bonds (GDBs) may indicate a shift in investment focus towards more lucrative opportunities in foreign securities.
Overall, the data presented by the Central Bank of Oman (CBO) indicates a positive outlook for the banking sector in Oman. The steady increase in total deposits, credit granted, and investments in securities demonstrates the resilience and adaptability of traditional commercial banks in Oman. As the banking landscape continues to evolve, commercial banks in Oman are well-positioned to capitalize on emerging opportunities and contribute to the economic growth of the Sultanate.
