The 88th meeting of the Board of Directors of Pak Oman Investment Company (Pak Oman) was recently held in Karachi, which was chaired by His Excellency Yahya Al-Jabri. Bahauddin Khan, Managing Director Pak Oman, updated the Board of Directors regarding the ensuing strategy being followed by the management to further strengthen its position in the financial sector. The MD further stated that the portfolio diversification remained on target, with the Company continuing its policy of adding quality assets through effective risk management, and prudent marketing.
The Company adopted the growth strategy supported by multifaceted approach which paid positive dividends. In 2017, Pak Oman successfully capitalized on opportunities that enabled the Company to enhance its loan portfolio to Rs 19 billion ie an increase of 27% over 2016, ensuring a stable mark-up income stream. This is the highest portfolio amongst the peer companies. The total asset increased to Rs 65 billion from Rs 40 billion as at December 31, 2016, depicting an increase of 62 percent. This positive balance sheet expansion helped the Company to arrest downward spread impact and supported to achieve net mark-up income of Rs 856 million compared to net mark-up income of Rs 852 million in the corresponding year. Mainly due to maturity of high yielding PIBs and bearish spell of Pakistan Stock Exchange, the Company recorded Profit after tax of Rs 437 million.
The Board of Directors recorded their strong support and appreciation of the results of the Company and approved the accounts of 2017. The Board reposed complete confidence in the able leadership and abilities of the Managing Director and continues to look forward to his effective and vibrant contribution.
The Board of Directors also recommended to the shareholders cash dividend at seven percent which translated into Rs 430.5 million. It is to be noted that State Bank of Pakistan has reappointed Pak Oman as a Primary Dealer for the year 2017-2018. JCR-VIS Credit Rating Company Limited has reaffirmed Company's Credit Rating at AA+ (Double A Plus) for long-term and A1+ (A One Plus) for short-term and also reaffirmed the Corporate Governance Rating at CGR-9.-PR
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