Al Omaniya Financial Services

AL OMANIYA FINANCIAL SERVICES(SAOG) ANNOUNCES 16.94% GROWTH IN NET PROFIT AND STANDS AT RO 4.831 MILLION – DECLARES 25% DIVIDEND

Oman largest NBFC Al Omaniya Financial Services declared its audited results for the year 2011 showing a Net Profit of RO 4.831 million for the year ended 31December 2011, an increase of 16.94% over the previous year. This is subject to the approval of the CBO and the AGM.

The total revenues of the company stood at RO 14.436 Million. The company has provided RO 1970K as provision for doubtful debts. The cumulative provisions stand at RO 6023 million. The Earnings per Share is RO 0.031, the highest in the industry. For regulatory limits, the net worth of the company stands at RO 45.465 million.

On the basis of its good performance, the Board has recommended a dividend of 25% comprising 20% cash and 5% stock dividend on the paid-up capital for the year 2011. This is subject to the approval of the CBO and the AGM. Mr. Aftab Patel, CEO in his comments stated 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 278%. The cash dividend is highest amongst all NBFCs in Oman.

The book value of the share is RO 0.226 the highest in the industry. The company has a well diversified portfolio of assets with the lowest 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 and has been a consistent dividend payer since inception

On most of the parameters, the company stands at pole position viz. number one in Asset size, highest net worth, highest market capitalization, highest profit, highest EPS, highest profit per employee and lowest non-performing loans and largest market capitalization on the MSM in the sector.

The company’s unique distinction being that not only it is the largest NBFC in Oman with asset size in excess of RO 159 million and leads in all parameters, but it has the lowest non-performing loans among the Banking and Non-Banking sectors, reflecting the highest quality of its portfolio of Assets. Mr.Aftab Patel, CEO of the company said in his comments.

The company is expected to improve its performance and profitability for the year 2012 and maintains its number One position. Moody's has reaffirmed the global scale long term issuer rating of 'Ba3' to AOFS for the year 2011-2012.

Further the company is launching its Rights Issue of un-secured compulsorily convertible bonds worth RO 10 million by the first quarter 2012 with a tenor of 5 years and 20% of the Bonds will be converted into equity shares of the company at the end of every year, i.e. 12, 24, 36, 48 and 60 months from allotment over the tenor of 5 years.

PRESS RELEASE BY MR. AFTAB PATEL, CHIEF EXECUTIVE OFFICER:

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