(MENAFN- Muscat Daily) Oman's Islamic banking sector witnessed significant growth during the first half of 2014 in terms of deposits and revenues amid a strong turnout for products by individuals and corporates.
Net revenues of Islamic banks and windows soared 147 per cent to RO16.6mn by the end of June this year compared with RO6.7mn at the end of June 2013. Deposits meanwhile jumped 133 per cent to RO358.7mn from RO154mn.
According to data compiled by ONA deposits at the five Islamic windows as of end June 2014 stood at RO278.6mn compared with RO13.5bn for the five traditional banks.
Deposits with Islamic windows grew by 74.6 per cent against 16.3 per cent reported by the five commercial banks operating Islamic windows namely Bank Muscat's Meethaq National Bank of Oman's Muzn BankDhofar's Maisarah Ahlibank's Al Hilal and Bank Sohar's Sohar Islamic.
Revenues of the five Islamic windows grew to RO12.4mn by the end of June 2014 posting a 100 per cent year-on-year growth. Revenues of commercial banks with windows grew by 4.8 per cent to RO226.5mn.
Eng Abdul Hafidh Salim Rajab al Aujaili chairman of BankDhofar said the total assets of Islamic windows at the end of June 2014 stood at RO125.2mn which include RO88.7mn of net finance and RO10.2mn of investments in sukuk. Customer deposits stood at RO26.9mn.
According to the chairman of Bank Muscat Sheikh Khalid al Mashani finance transactions of Meethaq stood at RO352mn at the end of June 2014 compared with RO214mn a year ago. Customer deposits with Meethaq rose to RO179mn from RO133mn.
Meethaq stood first in terms of customer deposits followed by Bank Nizwa (RO74.5mn) Al Hilal (RO31.8mn) Maisarah (RO26.9mn) Sohar Islamic (RO22.7mn) Muzn (RO18.4mn) and finally alizz islamic bank (RO5.5mn) the data showed.
Finance provided by Islamic windows was up 140.2 per cent to RO624.7mn while loans provided by the five commercial banks with windows increased 25 per cent to RO13bn for the period under review.
Gross assets of Bank Nizwa and alizz islamic grew 25 per cent to RO337.6mn from RO270.2mn. While Bank Nizwa managed to reduce its loss to RO3.8mn from RO9.7mn alizz islamic's loss rose from RO1.5mn to RO2.6mn.
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