Muscat – With the continued robust growth of Oman’s Islamic banking sector, total assets of Islamic banks and tellers operating in the sultanate jumped 9.6% year-on-year to RO6.2 billion in June 2022 .
Oman’s Islamic banking assets now represent 15.9% of the total assets of the country’s banking system, according to the latest data released by the Central Bank of Oman (CBO).
The sultanate’s Islamic banking entities provided total funding of RO5.1 billion through June 2022, registering robust growth of 11.2 percent from a year ago, the CBO said in its bulletin. monthly statistics.
Total deposits held with Islamic banks and ATMs also increased by 12.8% to RO4.7 billion in June this year compared to the same period a year ago.
The sultanate’s Islamic banking sector – which includes two fully-fledged Islamic banks and five Islamic banking windows – has continued its double-digit growth despite the negative economic impact of the COVID-19 pandemic.
Oman’s Islamic banking entities saw about three times higher profitability in 2021 compared to the plunge seen in 2020 due to the COVID-19 pandemic, according to the latest CBO Financial Stability Report.
In 2021, the Islamic banking sector posted a pre-tax profit of RO82 million compared to RO27.4 million a year ago, which improved the sector’s return on assets and return on equity.
The asset quality of the Islamic banking finance portfolio also remained strong with a non-performance funding ratio of 1.9% at end-December 2021, which is among the lowest in the region, the CBO noted.
The Central Bank of Oman said it was working on introducing a range of Islamic money market instruments to meet the liquidity needs of the Islamic banking sector.
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).