Net profits of MSX-listed finance companies exceed 13 million

Finance companies listed on the Muscat Stock Exchange (MSX) achieved net profits of OMR13.3 million in the first half of this year, marking a 1.6 percent increase from OMR13.1 million in the corresponding period of the previous year. This growth is attributed to government directives aimed at developing non-oil sectors and enhancing their contribution to economic diversification, coupled with strong demand for financing products from individuals, SMEs, and private sector companies.

The active business environment in Oman and the high demand for financing products have bolstered the finance sector's performance. National Finance Company reported a 15.2 percent growth in net profits, reaching approximately OMR8.1 million from OMR7 million year-on-year. United Finance demonstrated the highest growth, with net profits surging by 34.4 percent from OMR1.211 million to OMR1.628 million. Oman Finance Services Company also saw a rise, with net profits increasing by 4.2 percent from OMR1.689 million to OMR1.761 million.

However, the sector's overall performance was tempered by profit declines at Taajeer Finance and Muscat Finance. Both companies increased their provisions to address rising non-performing loans. Taajeer Finance's net profits fell from around OMR2.7 million to OMR1.4 million, while Muscat Finance's profits dropped from OMR520,000 to OMR468,000.

Despite these challenges, finance companies remain optimistic about maintaining positive performance. They anticipate benefiting from expanding economic activity, increased demand for financing, and improvements in credit portfolio quality. The government's continued spending on infrastructure and efforts to boost business confidence are expected to further drive demand for financing products. The companies are committed to strengthening their financial positions, enhancing asset quality, reducing non-performing loans, and building robust financing portfolios and liquidity levels.