Oman banks eye foreign funds
Strong profits support lending
Omani bank loans rose to their highest in two years in March, raising speculation that local banks might borrow more from abroad as lending growth outpaces deposits.
Figures released by the Central Bank of Oman (CBO) saw loans rise almost 9 percent year on year to OR33.4 billion ($87 billion) in March.
Personal loans, which made up 44 percent of total, climbed 7 percent and business lending 6 percent, the bulletin showed.
By contrast, deposits grew at a slower pace of less than 7 percent to OR32.3.
“Omani banks need to look for fresh [foreign] funds to keep up pace with their lending portfolio this year,“ Khalifa Jaidi, a financial adviser, told AGBI. “They cannot realise solely on deposits to keep them in business.”
Omani banks listed on the Muscat Security Market (MSM) posted a 15.2 percent rise in net profits in 2024 to OR523 million.
“Omani banks are well capitalised for both short and long term,” said Suleiman Hajri, financial consultant at Sohar Capital Investments. “Their liquidity, backed by strong profits, can bail them out to keep their lending to deposit ratio on track.”
