2026-08-31
Oman Bank Loans Exceed Deposits As Ratio Reaches 102.9%
JEDDAH: Loans extended by Oman’s commercial banks exceeded their deposit base at the end of June, with the loan-to-deposit ratio reaching 102.9 percent, according to official data.
Private sector deposits rose 12.45 percent year on year to 19.37 billion Omani rials ($50.4 billion), Oman News Agency, known as ONA, reported, citing the Central Bank of Oman’s monthly statistical bulletin.
The latest figures come as Oman’s economy continues to expand. The International Monetary Fund expects real GDP growth of about 3.7 percent in 2026, driven by higher oil production, while non-hydrocarbon growth is expected to remain positive, supported by broad-based economic activity.
The IMF said in June that Oman’s banking sector remained resilient, supported by comfortable capital and liquidity ratios, strong asset quality and profitability.
Private sector deposits rose 12.45 percent year on year to 19.37 billion Omani rials ($50.4 billion), Oman News Agency, known as ONA, reported, citing the Central Bank of Oman’s monthly statistical bulletin.
The latest figures come as Oman’s economy continues to expand. The International Monetary Fund expects real GDP growth of about 3.7 percent in 2026, driven by higher oil production, while non-hydrocarbon growth is expected to remain positive, supported by broad-based economic activity.
The IMF said in June that Oman’s banking sector remained resilient, supported by comfortable capital and liquidity ratios, strong asset quality and profitability.
Deposit composition
According to ONA, time deposits stood at 5.22 billion rials at the end of June, while savings deposits reached 6.54 billion rials and demand deposits totaled 7.28 billion rials.
Of total private deposits, 16.60 billion rials were denominated in Omani rials, while 2.67 billion rials were held in foreign currencies.
The bulletin showed that the ratio of total cash and clearing balances to Omani-rial deposits stood at 7 percent, while the ratio to total deposits was 5.6 percent.
Foreign-currency deposits accounted for 18.9 percent of total deposits. Foreign assets represented 15.4 percent of total loans and 12.5 percent of total assets, while foreign liabilities accounted for 10.9 percent of total liabilities.
Demand deposits made up 39 percent of private deposits, while capital and reserves represented 21.1 percent of total deposits. Provisions and retained interest stood at about 5.5 percent of total credit.
According to ONA, time deposits stood at 5.22 billion rials at the end of June, while savings deposits reached 6.54 billion rials and demand deposits totaled 7.28 billion rials.
Of total private deposits, 16.60 billion rials were denominated in Omani rials, while 2.67 billion rials were held in foreign currencies.
The bulletin showed that the ratio of total cash and clearing balances to Omani-rial deposits stood at 7 percent, while the ratio to total deposits was 5.6 percent.
Foreign-currency deposits accounted for 18.9 percent of total deposits. Foreign assets represented 15.4 percent of total loans and 12.5 percent of total assets, while foreign liabilities accounted for 10.9 percent of total liabilities.
Demand deposits made up 39 percent of private deposits, while capital and reserves represented 21.1 percent of total deposits. Provisions and retained interest stood at about 5.5 percent of total credit.
GCC banking growth
The figures follow strong deposit growth among Oman-listed banks earlier this year. Customer deposits at Oman-listed banks reached $90.4 billion at the end of March, up 4.9 percent quarter on quarter, the strongest deposit growth among GCC banking markets, according to Kamco Invest.
Omani banks also recorded a 3.3 percent increase in net interest income in the first quarter to $600 million, the strongest growth among GCC markets, according to the investment firm.
Across the GCC, outstanding credit facilities rose 9.2 percent year on year to about $2.17 trillion by the end of March, Kamco Invest said.
The investment firm attributed the continued expansion in lending to economic diversification efforts, infrastructure spending and supportive monetary policies.
The figures follow strong deposit growth among Oman-listed banks earlier this year. Customer deposits at Oman-listed banks reached $90.4 billion at the end of March, up 4.9 percent quarter on quarter, the strongest deposit growth among GCC banking markets, according to Kamco Invest.
Omani banks also recorded a 3.3 percent increase in net interest income in the first quarter to $600 million, the strongest growth among GCC markets, according to the investment firm.
Across the GCC, outstanding credit facilities rose 9.2 percent year on year to about $2.17 trillion by the end of March, Kamco Invest said.
The investment firm attributed the continued expansion in lending to economic diversification efforts, infrastructure spending and supportive monetary policies.
Source: ARAB NEWS