Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Oman ORIX eyes 15-20% increase in disbursements  Join our daily free Newsletter

MENAFN - Times of Oman - 25/03/2010

No. of Ratings : 0
Add to Mixx!


(MENAFN - Times of Oman) Oman ORIX Leasing Company SAOG is looking at a 15-20 per cent growth in its disbursements during the current year and expand its branch network in the second half of this year, its chief executive officer, Hira Lal Bharvani said.

The company, which provides asset-backed financing to corporate and individuals, disbursed RO24.81 million in 2009 and would continue to have a "cautious" approach towards fresh lending in 2010 to control the delinquency level, he said on the sidelines of the company's annual general meeting (AGM).

The net profit of the firm declined by 18 per cent in 2009 over that of the previous year to RO2 million as tighter liquidity situation dampened vehicle as well as equipment demand and put pressure on loan recoveries.

Such situation has led to the management concentrating on quality on assets instead of mere volume-based growth, it said in a note to its shareholders. The level of impaired assets increased to 3.3 per cent in 2009 of its exposure as compared to 2.3 per cent a year earlier. "We do not expect the (delinquency) situation to deteriorate any further in 2010," Bharvani said.

Earlier in the AGM, the company's chairman, Khalid Hilal Al Maawali said the accumulated provisions against doubtful debts were RO3 million, which represented 320 per cent coverage over the requirements of Central Bank of Oman (CBO).

Oman ORIX, owned by Oman National Investment Corporation Holding SAOG (ONIC) to the extent of 35 per cent, expects the spread between its borrowing and lending rates to improve during the year from its current rate of around three per cent, he said.

This would be due to softening of interest rates in the overall banking system, which is the source for bulk of its funding apart from corporate deposits for onward lending to its clients, he said. Corporate deposits comprise about 16 per cent of its total borrowings.

In 2009, its borrowings from commercial banks were RO20.8 million and carried interest rates ranging from 5.5-8 per cent while the interest charges of corporate deposits ranged from 6.25-7.35 per cent, as per information provided in its annual report.

Based on the firm's 2009 balance sheet, a 50-basis point rise in its average funding cost is expected to result in an outgo of RO41.81 million and impact the net profit to the extent of RO209,000, it said. "We expect 2010 to be better," Bharvani said when asked about the management's outlook on the spreads or margins.

Oman ORIX currently operates from its head office in Muscat and branches in Sohar, Salalah, Nizwa, Ibra and Barka. "We believe in geographical expansion and would add one more branch in the second half of this year," Bharvani, who took charge in his current capacity in 2006 after a stint with ORIX Leasing Pakistan, said. Earlier in the AGM, the shareholders of the company, in which ORIX of Japan holds about a fifth of the total stake through direct and indirect holdings, approved a cash dividend of eight per cent and a stock dividend of 22 shares for every 100 shares held.


  MENA News Headlines

Click to Apply



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help