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Oct 26 2013

Al Omaniya Q3 net profit advances 10% to OMR4m

Muscat - Al Omaniya Financial Services SAOG said its third-quarter net profit rose 10.02 per cent year-on-year.

Announcing unaudited results for the quarter ended September 30, Oman's largest non-banking financial institution said profit after tax jumped to RO4.06mn from RO3.69mn in the same period last year.

It provided RO2.19mn towards allowance for general impairment in the 2013 quarter compared with RO1.72mn for the same period last year, an increase of 27.32 per cent. Total provision stood at RO8.94mn as of September 30, 2013.

The company's net worth was up 5.35 per cent to RO59.04mn from RO56.05mn. The paid-up equity share capital increased 10.50 per cent to RO22.33mn, against RO20.21mn in the year-ago quarter. The company's loan book grew 12.17 per cent to RO221.16mn from RO197.16mn in the same period last year.

According to chief executive Aftab Patel, "The company maintained its No 1 position among the NBFCs in terms of asset size, net profit, profit per employee, asset quality, net worth and market capitalisation."

He said that with the recent conversion, resulting in an increase in company capital to RO22.33mn, market capitalisation is now over RO80mn, almost twice that of any peer in the industry. "The Oman economy has posted stable growth on the strength of oil prices, infrastructure spending and reserves and surpluses of the past year. The creation of new jobs, both in the government and private sectors, will boost consumption expenditure and the demand for credit."

Patel added that Moody's Investors Service reaffirmed the rating of Al Omaniya. The company has been assigned a Ba3 local and foreign-currency corporate family rating, which indicate a credit risk equivalent to its senior secured debt. The rating carries a stable outlook.

Moody's said that Al Omaniya ratings capture its sustained good financial performance, underpinned by high profitability levels; sound and increasing capitalisation; and, the resilience of the loan portfolio aided by Al Omaniya's prudent underwriting policy and Oman's stable operating environment.

"Barring unforeseen circumstances, the company is expected to perform very well and maintain its track record of increased earnings and consistent dividends on its increased capital of RO22.33mn," Moody's added.

© Muscat Daily 2013


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