(MENAFN- Muscat Daily) Muscat- Total assets of Islamic banks and windows in Oman reached to RO3.4bn at the end of April 2017 compared with RO2.54bn a year ago, recording a robust growth of 34 per cent.
Islamic banking industry now accounts for 11 per cent of total banking system assets in the sultanate.
Islamic banking entities provided total financing of RO2.7bn as at the end of April 2017, registering a 37 per cent growth compared with RO1.94bn of total financing a year ago, according to the monthly statistical bulletin released by the Central Bank of Oman (CBO).
Total deposits held with Islamic banks and windows jumped by 44 per cent to RO2.5bn in April 2017 from RO1.72bn outstanding as at the end of April 2016.
The combined balance sheet of conventional and Islamic banks taken together, provides a complete overview of the financial intermediation taking place in the banking system in Oman, the CBO said.
'With oil prices continuing to remain low, economic activity in the sultanate remained subdued', it said.
The central bank said that the financial position of the banks in Oman in terms of asset quality, provision coverage, capital adequacy and profitability remained sound.
The gross non-performing loans as a proportion of total loans and advances stood at 2.1 per cent at the end of December 2016. Conventional banks' total outstanding credit grew three per cent at the end of April 2017 compared to a year ago. Credit to the private sector increased by 5.3 per cent to RO17.8bn as at the end of April 2017.
Aggregate deposits held with conventional banks increased by 4.4 per cent to RO19.1bn in April 2017 from RO18.3bn a year ago.
Government deposits with conventional banks went up by 11.1 per cent to RO5.2bn, while deposits from public enterprises declined by 17.4 per cent to around RO1bn during the same period.
Private sector deposits, which accounted for 65.8 per cent of total deposits with conventional banks, increased by 3.9 per cent to RO12.6bn in April 2017 from RO12.1bn a year ago.
The core capital and reserves of conventional banks as at the end of April 2017 stood at RO4.1bn.
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