MUSCAT: Kick-starting the second-quarter earnings season, Al Omaniya Financial Services Co reported a 6.2 per cent rise in net profit for the six-month period ended June 30.
The company posted a net profit of RO3.1mn for the first half of 2015, compared with RO2.93mn in the same period last year. Total revenue inched up to RO9.28mn from RO9.23mn a year ago. Total expenses (including interest costs and general allowances for impairment) decreased 2.7 per cent to RO5.75mn.
“Considering the economic conditions we are satisfied with the second-quarter performance though gross margins remained subdued,” chief executive officer Aftab Patel said.
Al Omaniya’s net instalment finance receivables rose by six per cent to RO230.48mn from RO217.32mn a year ago. The company’s net worth rose 5.36 per cent to RO53.28mn from RO60mn.
The company expects better volumes in the third and fourth quarters of this year helped by project financing in conjunction with banks. “We can increase our gross margins with this. Our non-performing assets continue to be under control, at below one per cent. With challenging circumstances and competition in the market we have to be more creative in approach and try to come up with better products,” Patel said.
Al Omaniya last week submitted a non-binding indicative offer for 100 per cent acquisition of United Finance Co.
Patel said the proposed acquisition will add to Al Omaniya’s size and growth, adding, “We submitted the offer and now the ball is in their [United Finance’s] court. Once we hear from them we will inform the market.”
He said the company would enjoy advantages of size and scale if the merger goes through. “Our loan book would move from RO230mn to nearly RO350mn and gross revenue will go up to RO30mn. We will have twice the staff strength and more distribution strength. It will also help the financial industry landscape in the country.”
