(MENAFN- Muscat Daily) Al Omaniya Financial Services, the largest non-banking financial company (NBFC) in Oman, reported a 7.1 per cent rise in net profit to RO1.31mn in the first quarter of 2014, against a net profit of RO1.22mn in the same period of the previous year.
For the quarter ending March 31, 2014, the company posted a net income of RO3.28mn, which was almost flat compared with RO3.27mn in the first quarter of 2013.
The loan book recorded a moderate growth of 1.16 per cent to stand at RO216mn, against RO213.5mn in the same period of the previous year.
''With demand for capital goods expected to go up due to higher infrastructure expenditure, the prospects for the finance and leasing sector looks optimistic in 2014,'' the company said in its chairman's report submitted to the Muscat Securities Market.
It added that diminishing margins due to intense competition, rising cost of funds, new banks entering the market and higher delinquencies due to reduced cash flows at the individual borrower level are causes of concern.
Al Omaniya Financial Services, however, said that it expects to maintain its track record of profitability and dividends in spite of the challenging circumstances.
''We foresee a challenging yet optimistic year ahead, given the expected economic turnaround and the positive economic indicators. The company is very well poised to take advantage of the new opportunities, given the right capital structure, high net worth, free leverage, and fresh funds,'' the company said in the report.
Al Omaniya Financial Services continues to maintain its position as Oman's largest NBFC in terms of asset size, net worth, market capitalisation, net profit and provisioning cover for NPLs.<
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