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Quantum jump in National Finance earnings as lease disbursals soar

MUSCAT: The National Finance Company has reported profit of RO1.537 million for the half-year ending June 30, following a successful first six months of operations that saw an increase in year-on-year profit of 68.4 per cent for the same period in 2010.

The company, an established leader in the financing sector in Oman for over two decades, explained that profits were driven by net investment in finance leases growing by 32.1 per cent to RO94.52 million, while National Finance 's overall income from financing activities rose by 22.7 per cent to RO4.73 million from RO3.86 million for the first six months of 2010.

In a statement, the company says that its business and financial performance has been driven by good demand for its products in both the small and medium sized enterprise (SME) and retail elements of its business.

And as a result of a higher level of lease disbursals enjoyed by the company, net investment in finance leases increased to a level of RO94.52 million in June 2011 -- an increase of RO14.44 million on the figure reported at the end of December 2010.

The company stated that it has seen a significant pick up in its business for the first half of the year and was confident that this upward growth trend will continue into the second half of 2011.

Commenting on the results, Robert Pancras, chief executive of National Finance , said: "We are delighted with the way that our business has enjoyed so much growth over the past six months with the second quarter of the year being particularly successful."

"In the past three months, retail growth has been dominated by an increase in our vehicle financing business in the automobile sector where we are able to provide and deliver highly effective and favourable financing options for individuals to suit their repayment timing and strategy," he added.

"There has clearly been a big boost in consumer confidence in the overall economy in recent months as more money has come into the economy through the creation of new jobs and increased salary packages with many individuals choosing to invest in cars which tend to be a necessity for transportation in our country. The SME business has also seen significant growth driven by both new customer acquisition and equipment replacement by existing customers," the CEO said.

Managing risk
Pancras pointed out that he and his colleagues at National Finance believe that the success they have been achieving is just a small part of a growth in economic confidence that the Sultanate is now enjoying that will put the country in good stead for continued development and prosperity in the future.

He further said that the company's business strategy, combined with its disciplined and conservative approach to managing risk, has ensured continued revenue and profit growth, while maintaining good levels of liquidity and the company remains confident about future business opportunities.

Established in 1987, National Finance is one of the most established finance companies in the Sultanate of Oman. The company is engaged in providing finance to corporates, SMEs and individuals for equipment, vehicles and working capital purposes. National Finance operates nationwide.

© Times of Oman 2011