In a move to facilitate the transaction to the customer, the company's chairman Mr. Faisal bin Mohammed Yousuf spoke to Ziad bin Mohammed about Muscat Finance Company and its way of direct communication with customers as the Muscat Finance Company opened a new corner for its services in Muscat City Centre in a series of services offered to its customers.
On behalf of the Board of Directors of Muscat Finance (SAOG), I am pleased to present the report for the half year ended June 30, 2017.
The Company recorded net profit of RO 2.20 million for the period ended June 30, 2017 as against RO 2.18 million for the corresponding period in previous year. We continued to maintain a prudent approach to asset growth and the net loans and advances shrunk to RO 143 million.
The financial results are summarized below:
|Amount in RO ‘000|
|PARTICULARS||YTD - 30 th June 2017||YTD - 30th June 2016||% Change|
|Net Investment in Finance Debtors||143,187||155,913||(8%)|
|Net Operating Income||4,811||5,193||(7%)|
|Net Profit after tax||2,201||2,177||1%|
Human Resources and Omanisation
The company continues to invest in and developing its staff. A few of our staff were enrolled in the ACCA programme and their progress has been satisfactory. The Omanisation ratio at 82.09% for the period ended June 30, 2017, continues to be above the 80% requirement of the Central Bank of Oman.
Business outlook for 2017
The cost of funds continues to rise and put pressure on margins. The arrears in loan receivables are increasing due to the challenging market conditions. We continue to monitor both these critical issues carefully.
On behalf of the Board, I would like to express our most sincere thanks and gratitude to the builder of Modern Oman, His Majesty Sultan Qaboos Bin Said, 2 whose Leadership and Vision provide the foundation for the economic, political and social progress of the Sultanate of Oman. I would also like to thank His Majesty’s Government, the Central Bank of Oman, the Capital Market Authority, Ministry of Commerce and Industry and other Regulatory Authorities for their continued support and guidance.
The Board would like to thank all our customers for their continued patronage and support, to our local and overseas bankers for their active co-operation, and to all the shareholders for the confidence reposed in its Board.
Finally, the Board would like to appreciate and thank the management and the staff for all their good work and efforts.
On Behalf of the Board of Directors
Faisal bin Mohamed Al Yousef