MUSCAT: Al Omaniya Financial Services, Oman’s largest non-banking financial company (NBFC), has recommended a dividend of 25 per cent comprising 17 per cent cash, 3 per cent stock dividend and 5 per cent compulsorily convertible bonus stock bonds.
The company’s audited results for the year ended 2015 shows a net profit of OMR6.657 million, an increase of 2.73 per cent over the previous year. Al Omaniya Financial posted a total revenue of OMR19.198 million and has provided OMR2 million as provision for doubtful debts. The cumulative provisions stand at OMR8.658 million.
Earnings per share is OMR 0.028, the highest in the industry. For regulatory limits, the net worth of the company stands at OMR66.831 million. The company’s loan book stands at OMR255 million, a record for the non banking financial services companies.
Aftab Patel, chief executive officer of Al Omaniya Financial Services, said that the company has maintained its track record of paying uninterrupted dividend since its inception and the cumulative percentage of dividend paid so far is 378 per cent. The dividend is highest amongst all NBFCs in Oman.
The book value of the share is OMR0.241— the highest in the industry. The company has a well diversified portfolio of assets with the lowest non-performing asset (NPA) ratio in the industry. The company focuses to strengthen its position as a specialised financial institution to meet the corporate needs besides continuing the retail and micro finance business. The company has been posting higher earnings and profitability over the years.
Al Omaniya Financial Services maintains its pole position on all parameters viz. number one in asset size, highest net worth, highest market capitalization, highest profit, highest earning per share (EPS), highest profit per employee and lowest non-performing loans and largest market capitalisation on the Muscat Securities Market in the sector.
Aftab said that the company’s unique distinction being that not only it is the largest NBFC in Oman with asset size in excess of OMR254 million and leading in all parameters, its lowest non-performing loans are at a meagre 0.62 per cent, the lowest among the banking and non-banking sectors, reflecting the highest quality of its loan book.
The audited results and the proposed dividends are subject to the approval of the Central bank of Oman and at the annual general meeting.
Moody’s Investors Service has reaffirmed the global scale Ba3 local and foreign currency corporate family rating (CFR) with stable outlook, Aftab said. “This affirmation is not only gratifying but also a testimony to the fact of Al Omaniya’s relentless pursuit of quality,” he added. “The company is resilient and cautiously optimistic of posting satisfactory performance for the year 2016,” the CEO said.
