The 93rd Meeting of the Board of Directors of Pak Oman Investment Company (Pak Oman) was recently held in Karachi. The meeting 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 Managing Director stated that the Company recorded Profit before tax of Rs 749 million, the achievement of profitability is contributed mainly due to efficient pricing of deposits and loans, a well-balanced growth in loan-book, consolidation of our portfolio and strengthening of systems for credit origination / control and monitoring. This has been achieved despite maturity of high yielding PIBs and continued bearish spell in the stock market.
The prudent risk management policies continued to yield positive results, as a consequence the asset quality has further improved. During the year under review, the Company successfully reversed Rs 332 million from provisioned accounts. The total outstanding non-performing loans and investments (NPLIs) and the NPLI ratio declined to Rs 1,391 million (2017: Rs 1,729 million) and 5.4% (2017: 7.1%) respectively. On cumulative basis NPLIs decreased by 42% in last four years which was stood at Rs 2.4 billion on December 31, 2015. The advances portfolio has further optimized and the total amount of advances increased to Rs 20.5 billion compared to Rs 18.8 billion in 2017 depicting an increase of 9% over 2017. Due to well-planned and executed strategy, deposits of the Company grew to Rs 9 billion.
The Company holds one of the largest deposit portfolios amongst the peer institutions. During the period under review retail deposits grew to Rs 1.2 billion compared to Rs 0.91 billion in 2017. Company's capital adequacy ratio (CAR) stood at 17.36% as of December 31, 2018, meeting the requirement of the SBP, whereas consolidated CAR stood at 16.33%, depicting a well-capitalized position of the Company. The Managing Director further stated that the portfolio diversification remains well on target, with the Company continuing its policy of adding quality assets through effective risk management, and prudent marketing.
It is to be noted that State Bank of Pakistan has reappointed Pak Oman as a Primary Dealer for the year 2018-2019. 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.
The management is pleased to place on record that the Company due to its consistent good performance has been able to maintain its dividend payout record that was 8 and 7 percent respectively in the two preceding years 2016 and 2017. For the year 2018, the Board of Directors have recommended to the shareholders cash dividend of 7 percent. Pak Oman's dividend pay-out is the highest amongst the peer institutions.
The Board of Directors recorded their appreciation of the performance of the Company and approved the accounts of 2018. The Board reposed complete confidence in the able leadership, vision and abilities of the Managing Director and continues to look forward to his effective and vibrant contribution. -PR
Comments
Comments are closed.