Bank Dhofar Business Performance Update
Omani Banking Sector
بنك ظفار
Bank Dhofar
Overview of the Omani Banking Sector
▸ The Omani Banking Sector comprises 20 licensed banks, of which:
16 conventional commercial banks: 7 locally incorporated and 9 branches of foreign
banks
► 2 state-owned specialised banks: Oman Housing Bank and Oman Development Bank
► 2 full-fledged locally incorporated Islamic banks
▸ The Omani banking sector has been growing consistently in the past decade with banking
assets reaching over USD 102 billion in June 2022.
USD 86 billion for conventional banks and USD 16 billion for Islamic banks
Islamic banking sub-sector has been growing considerably in the past years
The banking sector has limited reliance on foreign funding, mainly due to strong domestic
deposit base
Regulatory Framework set by The Central Bank of Oman ("CBO")
▸ Several regulatory and supervisory initiatives have been implemented by the CBO to
develop a competitive and sound banking system
Imposing robust bank capitalization levels
▸ Implementation of Basel III regulation
► Introduction of a Prompt Corrective Action framework (the PCA) in 2005, which makes
it mandatory for banks to take corrective actions if their total capital adequacy ratio
falls below a certain level
Credit quality and provisioning - implementation of IFRS 9 as a more conservative
accounting standard for measuring and booking credit related provisions
Funding and liquidity - directing Omani banks towards a deposit-based funding and
significant liquidity buffers
►NSFR (minimum of 100%) and LCR (minimum of 100%): key reforms to maintain a stable
funding profile and a sound liquidity level
USD billion
Assets, Deposits and Loans of Omani Banks
89
93
65
67
40
60
61
94
4
101
101
USD billion
Islamic Banking Assets of Omani Banks
CAGR: 6.3%
72
74
15.3
15.8
69
67
67
13.5
63
12.7
11.4
2018
2019
Total Assets
2020
Total Deposits
2021
Total Loans
Q2 2022
2018
2019
2020
2021
Q2 2022
Conversion Rate: 1.00 OMR = 2.5974 USD. Used the conversion rate across the years for ease of comparison
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