Provisional statistics released by the Central Bank of Oman (CBO) indicate that import letter of credit (L/C) turnover in the Gulf country increased by nearly 50 per cent in the year to 31 October 2004.

This was one of several statistics that reflects strong banking sector performance last year in the sultanate.

Asset growth

On a year-on-year basis, the combined assets of Oman's banks increased by nearly four per cent from US$11.65 billion as at the end of October 2003 to more than US$12.09 million as at the end of October last year.

This was the first time aggregate assets of commercial banks in Oman crossed the US$12-billion-mark. The increase in total assets is widely attributed to increases in credit, investments in securities such as treasury bills and government development bonds.

Import L/Cs

Provisional data reveals a 27 per cent increase in banking industry profits for the first 10 months of 2004, and according to CBO some of the sharpest increases have been in L/C business.

The central bank says L/Cs for imports and letters of guarantee registered 47 per cent and 19.5 per cent growth respectively last year.

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