Investor Presentation September 2023
Omani Banking Sector
بنك ظــفـــار
Bank Dhofar
Overview of the Omani banking sector
► The Omani Banking Sector comprises 20 licensed banks, of which:
15 conventional commercial banks: 6 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 OMR 41 billion in August 2023.
► OMR 34 billion for conventional banks and OMR 7 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
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 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
OMR billion
34
36
Asset, Deposits and Loans of Omani Banks
36
23
23
25
24
26
26
22
27
24
39
26
26
28
39
26
26
29
29
41
30 30
2018
2019
2020
2021
2022
Aug-23
Total Assets
■Total Deposits
Total Loans
Source: CBO Monthly Statistical Bulletin August 2023
OMR billion
Islamic Banking Assets of Omani Banks
CAGR: 8.8%
7.2
6.4
5.9
5.2
4.9
4.4
2018
2019
2020
2021
2022
Aug-23
Source: CBO Monthly Statistical Bulletin August 2023
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