OIFC's 9M net profit soars 189% to RO5mn

03/02/2014 11:22 AST

Oman Investment and Finance Co (OIFC) posted a net profit of RO5.05mn for the nine-month period ended December 31, 2013, compared with RO1.75mn for the same period of the previous year - an increase of 189 per cent.

OIFC's net profit was boosted mainly by higher commission income and an increase in the company's share of profits from its associates during the period.

OIFC's commission income was higher by 14.9 per cent to RO9.4mn for the nine-month period, compared with RO8.18mn in the corresponding period of the previous year.

The company's share of profits from its associates was a gain of RO3.37mn, compared with a loss of RO41,000 in the corresponding period of the previous year, mainly on account of Bank Sohar being treated as associate during the current year.

OIFC has a 15 per cent holding in Bank Sohar.

OIFC's profits from operations, however, decreased by 3.8 per cent to RO2.9mn, compared with RO3.01mn in the corresponding period of the previous year. Investment income for the nine-month period ended December 31, 2013, was RO303,000, as against RO85,000 in the corresponding period of the previous year.

"The company's core business is expected to record a modest growth. The company is actively targeting areas for pruning costs and increasing efficiencies to improve its operations," said Ahmed Hamed Saif al Subhi, chairman of the board of directors of OIFC, in the company's board of directors report.

He added, "OIFC's investments have till date performed well and this is reflected in the improvement seen in the company's bottom line." OIFC's operating expenses, excluding depreciation, interest and provisions, were higher by 17.3 per cent at RO5.16mn, compared with RO4.4mn in the corresponding period of the previous year.

"Overall operating costs increased mainly due to an increase in staff costs, other than increases in rent, communication and transportation," Subhi added.

Muscat Daily