On behalf of the Board of Directors of Taageer Finance Company SAOG, I am pleased to present our audited financial statements for the year ended 31st December 2016. The financial results for the year 2016 indicate continuous growth in the performance of the Company despite economic challenges.
Company’s Performance for the Year 2016
Your Company has registered a Profit after Tax of RO 4.474 million in 2016 as against RO 4.421 million in 2015. The Company’s net leasing portfolio has grown by 20.19% from RO 126.686 million as at 31st December 2015 to RO 152.264 million as on 31stDecember, 2016 due to marketing efforts and improvement in operations efficiency to gain market share and to continue to focus on customer service and adopted an aggressive collection and recoveries strategy. Your Company has increased its market share even during the current challenging economic conditions due to high volatility in oil prices over the past two years and the tight liquidity conditions. The borrowing costs also increased considerably during the year 2016.
Outlook for 2017
The year 2017 is expected to be a very challenging year for the banking and finance sectors as the uncertainty in oil prices continue to be a major concern for the economy. The government has announced a cut in oil production in order to support OPEC’s initiatives to reduce oil glut and boost the oil prices to increase revenues from its energy sector. The Government has also announced its annual budget for the year 2017. The budget indicates some austerity measures aimed at boosting fiscal revenues.
The Board of Directors is pleased to recommend a cash dividend of 9.5% (RO 2.409 million) subject to approval by shareholders at the Annual General Meeting to be held on 27th March 2017.
With a paid up share capital of RO 25.359 million as at 31st December 2016, your Company is well capitalised and in compliance with the guidelines of the Central Bank of Oman.
Your Company holds a 5% stake in the equity capital of The Arab Leasing Company, Sudan, with a carrying value of RO 582K as at 31st December, 2016.
Change in the Composition of the Board
During the year 2016, the Audit Committee was reconstituted as Audit & Risk Committee and the Executive Committee was reconstituted as Executive, Nomination and Remuneration Committee with the same Board members in line with the new Code of Corporate Governance introduced by the Capital Market Authorities effective from July 2016.
There was a change in nomination of Director representing Iran Foreign Investment Company (IFIC) in the Board of Directors of your Company during December-2016.
Strengthening Human Resources
Your Company has continued to invest in Human Resources to sustain its growth in assets. The Company also provided training courses to support its employees to improve their skill levels to enable them to provide better customer services and progress in their careers to take up more responsibilities in the Company. Taageer considers its employees as being an integral part of the success of its business model. It constantly looks at the development goals of its employees to enable them to enhance their abilities and achieve measurable and sustainable results.
Your Company is committed to adhering to the highest standards of Compliance and Corporate Governance in line with the regulations issued by the Central Bank of Oman and the Capital Market Authority. During the year, the Board of Directors and the management team attended, well structured awareness sessions on the new Code of Corporate Governance which is effective from July 2016. A separate report on Corporate Governance is enclosed.
On behalf of the Board of Directors, I wish to express sincere gratitude to His Majesty Sultan Qaboos bin Said for his vision and wise leadership. I would also like to take this opportunity to express our sincere appreciation and acknowledgement for the guidance and support from the Central Bank of Oman, Capital Market Authority and Muscat Securities Market. We are also grateful to our shareholders, bankers, dealers and customers for their continued trust, confidence and support. Finally, the Board would like to appreciate and thank the management and the staff for all their hard work and efforts.
On Behalf of the Board of Directors.
Sheikh Faisal Al Hashar