Al Omaniya Financial shareholders approve dividend proposal

Muscat: Shareholders of Al Omaniya Financial Services have approved a proposal to pay a 25 per cent dividend—constituting a 17 per cent cash dividend and 8 per cent compulsory convertible unsecured bonus stock bonds—for 2016, according to Khalid Al Wahaibi, chairman of the company.
The shareholders also approved the audited financial statements of Al Omaniya Financial Services, the largest non-banking financial services company in Oman, at the annual general meeting conducted on Tuesday, March 21, which was presided over by Al Wahaibi.
“Al Omaniya Financial Services retains its pole position as Oman’s largest non-banking financial institution on most parameters,” said Aftab Patel, chief executive officer of Al Omaniya Financial Services.
The company’s loan book stood at OMR248 million at the year end of 2016, the highest among the non-banking financial services companies.
The total revenue of the company was pegged at OMR18.9 million, while pre-tax profit stood at OMR6.3 million and net profit was OMR5.31 million. The company has provided OMR1.60 million as provision for doubtful debt. Earnings per share was OMR0.020; for regulatory limits, the net worth of the company stood at OMR67.94 million. The book value of the share is OMR0.235.
The Board of Directors appreciated the measures adopted by the Central Bank of Oman and the Capital Market Authority with a view to strengthening the financial sector in the Sultanate.
Al Omaniya Financial Services has a well diversified portfolio of assets with the lowest non-performing assets ratio of 0.95 per cent in the industry. The cumulative provisions stand at OMR8.723 million, which covers 371 per cent of the non-performing assets.
The company has been paying consistent dividend since inception. Patel further stated that cumulative dividend paid till date stands at 403 per cent.
The company has the largest asset base, highest net worth, highest provision coverage, lowest non-performing loans and largest market capitalisation on the Muscat Securities Market in the sector.
Patel further added that considering the challenging circumstances facing the Oman’s economy, the company is expected to perform above the industry average and would continue to focus on quality and consolidation.