On behalf of the Board of Directors, we are pleased to present to you the results of the Company for the year ended December 31, 2023.

Over the last year, while we have witnessed gradual recovery from the effects of the pandemic, we have also seen the negative impact of a worldwide recession and higher interest rates resulting in slower growth and restrained business sentiments across the globe. In this period of uncertainty, we have been proactively engaging with our people and customers and help work around these challenges. In Oman, we have seen healthier growth rates and inflation is much better controlled than we have witnessed in certain other geographies. We are well aware of the many challenges we face but feel well prepared for these adverse situations, re-assured by the impact of our growth and transformation programmes, strong systems, processes and risk management that we have demonstrated over the past several years.

Your Company is the market leader in the leasing sector with a well-diversified geographical presence across Oman (21 branches), coupled with a broad product profile to meet the financing requirements of Retail, Corporate and SME segments. We carry good business momentum into 2024 in our core areas of operations and expect moderate lending growth over the current year. As a result of steady progress in implementing our transformation initiatives and establishing a robust platform for future growth, we anticipate a stronger credit offtake in the medium term with a need to balance credit risk with market growth. Your Company continues to adopt a judicious approach to credit approvals keeping in view the overall macroeconomic scenario and perceived increase in credit risk. Within this policy, our approach has been to target customers who satisfy our credit risk appetite. We aim to continue to strengthen our market leadership position in Oman while offering our customers an optimal experience. Our reading is that the economic climate will be cautiously optimistic.

During the year 2023, your Company focused on writing good quality business with improved margins. The Profit before tax was at RO 13.07 million (RO 11.92 million in 2022) while net investment in lease was at RO 486.86 million (RO 425.45 million in 2022), an increase of 14.43% over the previous year. Profit after tax was RO 11.11 million as compared to RO 10.13 million in 2022, an increase of 9.59% over the previous year. The strong results are also testament to the ongoing focus of our strategic actions which we set out back at the beginning of the year. Your Company redeemed the perpetual bonds of RO 18.20 million in full on the first call date in March 2023. This demonstrates our financial strength and commitment to our stakeholders in the face of challenging market conditions.

Your Company is in full compliance with the provisioning norms prescribed by the Central Bank of Oman and the International Financial Reporting Standards and prudently holds an additional overlay considering the external environment and developments in the region. The digital platform continues to play a pivotal role in our core business and we are constantly working to make the customer experience more accessible in both physical and digital spaces. We will continue to strive to improve our technological platform to be aligned with the digital transformation happening across the world and provide solutions that deliver best in class customer experience.

In each of our operating segments, we continue to focus on areas where we have demonstrated our strengths and have opportunities to grow:-

Digitization to enable scale - We continue to invest in our technology and operational capabilities to drive operating productivity across business segments and branches and to offer better client experience.

Energise for growth- We are building a dynamic and inclusive culture, and empowering our people by helping them develop future skills.

The Company’s dividend distribution aims at providing shareholders a reasonable return and to build reserves to achieve a strong capital base. Based on this, the Board recommends distribution of 9.6% dividend in cash. This dividend will be paid on the shares outstanding on the record date.

Your Company has been complying with all the requirements of the code of corporate governance, as specified by the Capital Market Authority (CMA). A detailed report on corporate governance is set out along with a certificate from the Statutory Auditors in compliance with CMA regulations.

Your Company has strategically partnered with leading organizations in the Sultanate focusing on education, community, health and environment in order to influence positive socioeconomic change. A total of Rials 150,000 was allocated to support various CSR programs during the year.

Geared towards fostering sustainable change, our Imtidad social responsibility program has initiated a range of projects spanning education, community engagement and environmental conservation. Embracing a transformative and holistic approach to corporate social responsibility, our diverse initiatives are designed to evolve alongside communities, addressing the various needs of individuals and contributing to the country’s socio-economic objectives.

During the year, we renewed our commitment with Injaz Oman to empower 1,000 participants to provide them with entrepreneurial skills. Likewise, our partnership with the Fund for Development of Youth Projects "Sharakah" is continuing for the fifth consecutive year to provide business owners with financial management and planning skills. These collaborations align with our mission to drive positive change, empower and enrich the community we serve.

We partnered with Dar Al Atta'a to support them in their “Tamkeen” initiative. We invested in building greenhouses specifically designed to support individuals with special needs as well as their families with limited income. The project focused on training people with special needs in areas of agriculture and entrepreneurship to generate sustainable employment opportunities and income for this segment. We have also extended our partnership with Dar Al Atta’a to another project that focused on training women in honey production skills in cooperation with the Ministry of Agriculture, Fisheries, Wealth and Water Resources. We have actively participated in initiatives of Oman Charitable Association as well as various other charities.

Your Company remains committed to Omanisation and as of December 31, 2023, the number of Omani employees was 324 out of the total workforce of 356. The Omanisation percentage works out to 91.01%, which is higher than the given target of 90%. Your Company continues to remain committed to providing career growth and development of Omani nationals through ongoing training in line with their job requirement to shoulder bigger responsibilities. We will continue to maintain momentum on employee engagement initiatives, development of future skills, managerial and leadership capabilities for professional development.

The FY 2024 Oman budget represents the fourth year of the Tenth Five-Year Development Plan (2021-2025) and is the first step towards the Oman Vision 2040 development objectives. The budget considers the recent global economic and geopolitical environment resulting in high inflation rates and growing global debt risks. The important pillars of Budget 2024 are improving the business environment and expanding the participation of the private sector in the economic development, maintaining safe and sustainable levels of public spending, continuing to raise non-oil revenue contributions, and giving priority to projects with a social dimension such as education, health and social housing projects. These initiatives by the Government are expected to achieve better financial efficiency and foster economic growth in 2024.

We extend our sincere gratitude to the Central Bank of Oman, Capital Market Authority, Muscat Stock Exchange, our bankers, depositors, vehicle and equipment dealers, customers and shareholders for the support extended for the growth of the Company. On behalf of the Board of Directors, we also thank the management and staff for their dedication and hard work.