Al Omaniya Financial Services said its net profit for the first half of 2011 rose 10.18 per cent to RO2.07mn from RO1.88mn in the same period last year.
The hire-purchase assets of the company has grown by 15.31 per cent and stood at RO144.4mn for the period ended June 30, 2011, as compared to RO125.2mn for the same period last year.
The company provided an allowance of RO1.05mn towards impairment. Total provision was RO6.39mn as of June 30, 2011. The company's current net worth for all regulatory purposes is RO42.70mn.
A company press release said pre-tax pre-provision profit rose 26.6 per cent to RO3.4mn from RO2.68mn in the same period last year.
Aftab Patel, chief executive officer, said that in view of the company's high net worth, it is well poised to meet the new paid-up capital requirement of RO25mn as stipulated by the Central Bank of Oman (CBO). "We are very optimistic about the year 2011 and the company is expected to perform very well and maintain its track record of earnings and dividends on the increased capital barring unforeseen circumstances."
In his report to shareholders, company chairman Khalid Said al Wahaibi said that the outlook for the future looks bright as the company has done a lot of provisioning for the future. "We foresee positive signs on the economic front and expect a good performance.
The company's conservative policies, sound capital structure and high level of provisioning will stand in good stead. In spite of challenging circumstances your company is expected to maintain its track record of earnings and dividends and sustained profitability and growth."
However, a prolonged retail liquidity crunch might encourage delinquency, which may not augur well for the company.
© Muscat Daily 2011
