Al Omaniya Financial Services SAOG ($AOFS)

I'm Aftab Patel, Chief Executive Officer of Al Omaniya Financial Services, it's my pleasure to welcome you all to this presentation and to the MSX discussion session. We'll take you through briefly the company information, including the published results. Once we are through, then there will be a fair amount of time, we'd be pleased to take any questions, curious, clarifications that you may have. And thank you very much for being here. Take on to the next slide, please. So this is the -- briefly the agenda, what we are going to be telling you, starting with a brief introduction, and finally, taking you through to the question-and-answer session. As you all know, we have been licensed under the Banking Regulation Act our primary regulator is Central Bank of Oman and we are licensed to carry on the business of a nonfinancial banking -- nonfinancial institution. And we do, we almost provide a very comprehensive suite of financial products, both on that long-, medium- and short-term end of the market. We both have a substantial Retail as well as a large Corporate portfolio. The company was formed wthe initial capital of OMR 3 million and the 60% of the capital came from the shareholders of [indiscernible] Muscat and 40% to be went public as required by the company's Commercial Act of Oman. And we are very fortunate that our initial public offer was well subscribed by 4,300% or 43x. Having said that, we have a very esteemed Board of Directors. Yes, we have been very fortunate that they have been with us almost for the entire life of this company. Our Board is headed by eminent Sheikh Khalid Said Al Wahaibi who has been the Chairman almost since the inception. And then we have Sheikh Khalid Ahmed Al Mashani, who also is in the Board of several financial institutions including Bank of Muscat. And then we have -- Sheikh Zaki Hassan Ehsan Al Naseeb, who is also the Chairman of the Audit Committee, who brings a lot of his experience. And then we have Mr. Nabil Al Mahrouqi, who represents the -- who is an independent director and brings with him a lot of experience in investment as well as in what you call margin management. And then we have Mr. Ibrahim Al Wahaibi who has been a long-standing member and with the company for more than 2 decades. Similarly, we have Sheikh Tariq Al Mashni, and Mr. Shikar Dharamsey. We have also Mr. Imad, and then finally, we have [indiscernible]. So on the management side, we have -- fortunate to have a group of people, a group very committed people, the management team. On this table, we probably represent at least about 150 years of experience. Most all of my team here has been with us for more than 2 decades, and they have been -- I'll just say briefly, the team will say, hello to you, I have here on my right, Latha Ramakrishnan, who is our General Manager, Risk Management, who has been with the company for a -- 27 years. Welcome to the meeting Latha.

Yes. Thank you. I think I'm really saying a very good evening to you all, and welcome to the meeting.

And then we have [indiscernible] our very proud to have, our HR manager who has been with the company for 17 years. And then we have Mr. Manish [indiscernible] Heads our IT and then we have the good secretary, Mr. Chandrasekar, and we have Mrs. [indiscernible], who heads our Retail Lifestyle product. And Mr. Ram Kumar, Chief Manager for our car and SMEs. We have Mr. [indiscernible], he is the head of our corporate portfolio. And then we have Mr. Chandrasekar, our Chief Manager Finance. And we have Mr. [indiscernible], who is online with our Deputy CEO, who has joined us online.

Hello, everybody. Good evening.

Welcome all of you. And I think now let's move on to the next -- management, then Yes, we'll take you briefly gentlemen to the -- our products. We offer products across various segments. I mean basically, we are bought into the corporate loans. They include working capital loans asset loans for plant machinery, transport equipment, commercial vehicles, we do bill-discounting, debt factoring, project finance, bridge loan, construction loans to warehouses and factories. We also accept fixed deposits from the corporate under the rules framed by the Central Bank of Oman, our regulator. And we have also Retail products, especially the Lifestyle Loans, which is a higher purchase product by acquiring white and brown goods. And on the Retail side, we also have a substantial car loan portfolio. Now basically on the Corporate side, we generally deal with large corporates, and we -- our endeavor has always been to look at prime and prime plus customer segmentation, which we believe is our one of the highlights of how Al Omaniya's business model is spread. Now coming a little bit to the highlights here. We are a premier market leader in several segments. Overall, we are not the largest, but we have in the prime and client trust category in certain classes of business like [indiscernible] collaborating with the banks for syndication financing is an area that any -- probably we're the only NBFC into that segment, which we have done a lot of syndication with the -- our partner banks like Bank Muscat, National Bank of Oman, Bank [indiscernible], et cetera, and we continue to focus on that as one of our -- one of our strategy to move. Then as you all know, our client base is now currently more than 100,000. We have a very consistent and a steady growth growth track record. We haven't grown by leaps and bounds, but we have grown in line with the GDP. And sometimes even higher that. We have -- we're very proud of the fact that Al Omaniya has paid dividend every single year of its existence from right from inception until 2025. And we're also proud of the fact that even during the COVID, we managed to retain our business, retain our people and also manage to pay a cash dividend. So gentlemen, our asset quality is good. Our provisioning cover is very robust. Our capital structure is grown. Our liquidity position is very high. And our NPL is one of the lowest in the industry, both across banking and nonbanking segment. Now let's go on to the next slide of the dividend payment. Gentlemen, if you see from 1998 to 2025, we have been very, very blessed, proud to have have a performance and have paid a dividend and a cash dividend every single year. And our total dividend payment is now in excess of 500% for the last few years. And that's a track record that we're really proud of. Both show the consistency and our commitment. Now let's very quickly move on to the -- we won't spend a lot of time here. All of you are already familiar with this. We'll talk a little bit about the Oman's fiscal performance or the budget numbers and the deficit and how things have moved on. And here, it is right in front of you gentlemen. Our projected revenue, I think, was yes, budget estimates was showed a deficit of OMR 620 million. We actually ended up with just under OMR 0.5 billion, OMR 480 million. And our spending was higher by 4%. Revenue growth was up by about 5%. I think the estimates of the oil price was about OMR 60, and we actually realized about OMR 70. So we won't go too much into the details. You are already familiar with most of these things, right, and broadly next one yes. Yes, we can also see that 2021, if you look at the actual numbers, a deficit of OMR 0.2 billion which then translated into actually a surplus of OMR 1.14 billion in the year 2022 against a projected deficit of OMR 1.6 billion and 2023 against a predicted deficit of OMR 605 million, we almost had OMR 1 billion surplus. And thereafter, our -- we ran a surplus of about OMR 0.5 billion. 2025 it was a deficit of OMR [ 400 million ]. And the Government of Oman has been extremely cautious, prudent, and they have paid down the debt, bringing down the -- our debt as a percent of GDP at a very dominant level considering what we had in the earlier 2 years. And that all does extremely well, right? Here, we have the financial framework, total spending. Also, we have seen a growth from '26, '27, '28 projections are good, okay? I think on the '26 budget takes into account the Oman Vision 2040, building a sustainable and a diverse economy has been one of the hallmark with the government policies. And I think that, it continues to augur very well, right? And we expect that our revenues [indiscernible] much higher. And then we also expected that we'll be able to report a substantial surplus in the budget 2026. Here, we have the our ratings, which are back into 2023, BB+, BBB, Ba1. So we're back into the investment-grade rating, now which augurs well for any debt that we want to raise both Moody's and S&P and Fitch, I think the ratings have been in line and with a stable outlook by all the three international ratings. So both we will be benefiting from what the Vision 2040 is for this government proposing to achieve, the government spending the development expenditure as well as we will be subject to the generic risk of -- the volatility in oil prices, geopolitical things that can arise. So we will always -- we will be subject to those risks as well, which -- what we believe, I personally believe those are very low very, very low risk, and we will continue to see a very stable and a growth environment going towards 2026 in spite of what we have seen in the region. I think now come to our financial performance. We have here for you financial statements going due from 2020 to 2025. I believe most of my informed audience share, they would have the opportunity to run through all this that have been published, and they're also available on the Muscat Securities Market website. Now as you've seen now from 2020 to 2025, we have seen a reasonable amount of growth. 2020 was the COVID year. So post that, our growth has always been from OMR 1.4 million to almost about 80% growth. Thereafter, we're seeing a growth of net profit between 10% to 12%. And we continue to focus on our growth, maintaining the asset quality, maintaining a robust provision, a very robust capital structure. That has been really [indiscernible] of the objectives that we aim to achieve going forward. Now 2020, if you look at the statistics, our gross higher-purchase assets was about OMR 114 million which are now currently at OMR 147 million. So if we look at growth, it is almost like about in the 5-year period, it be 35% to 40%, from OMR 114 million to OMR 127 million, that comes to 147 divided by 114. 29% to 30% over a period of 5 years, was a compounded growth about 5%. And in the same way, I think our provisions also have grown from OMR 9 million to about OMR 15 million now. Estimated total assets have grown from about OMR 181 million to currently OMR 225 million. Net borrowings are marginally grown in line with the -- our growth in the asset size. Our debt equity continues to be extremely low, showing a very high potential for growth. So if there are any growth opportunities, we will capitalize on those growth opportunities. We will not be constrained by lack of resources or banking facilities. So we have enough liquidity to to capitalize on whatever opportunities that come our way, so long they fit into our product quality. And I think ECP -- expected credit losses provision currently stands at 10.3%. And in the last 4 years, dividend, 2020 was a COVID year was an anomaly where the dividend was still paid, 4% cash, then we raised it by 300% in the very next year. And last year, our dividend to our 2025 gentlemen has already been paid and credited to the shareholders' account, was 16% and which is approximately about OMR 4.9 million. So we'll take you a little bit more into the 2025, our audited accounts. We had an unqualified clean audit report, it's duly been published both in the newspapers as well as on the MSX. Our auditors were Ernst & Young, [indiscernible] top 4 in Oman and for 2026, the Board of Directors and the shareholders have approved their appointment and they will continue to be our auditor for the year 2026. Now our comprehensive income, if you have a look at it, '25 as compared to 2024 because there was a fall in the rates, overall, both the interest cost as well as the lending rates fell. And so our income almost remained constant at OMR 15 million. The interest expense was down by almost OMR 600,000, which is about 10%, and as a result of which the net income grew by 6.6%. Our other income fell. That was mainly because we are increasingly writing off less and less as a result of which our right of collection is also declining. Operating expenses were by and large study. There was a marginal increase provision for expected credit losses were not required as per our model. And as per the regulators as well as per our auditors, we didn't -- we were required to write back OMR 305,000, which are substantially [indiscernible] depreciation, of course, and therefore, we have added a net profit of OMR 469,000, and after the income tax of OMR 661,953, we achieved a net profit of OMR 3,957,000, say OMR 4 million, which is a 10% growth over the last year. We continue to have now yes, this other [indiscernible] income is not to -- just the countries here about the [indiscernible] covered charges for the foreign currency loans or [indiscernible] compensated in the next report. Having a look at the balance sheet here, we continue to have robust cash balances of OMR 90 million, and I would like to come back to this cash balance is a little later after we go, all of will have questions on why you're holding this cash. So net investment in finance leases of OMR 132 million after deducting the provisions. And as a result of which, our total assets are OMR 225 million. On the liability side, there has not been a substantial change excepting that the borrowings have marginally gone up to reflect the increase in the -- our portfolio, our net investment in the loans, deposits are constant almost OMR 1 million increase. Term loans are same. We have compensate convertible bonds, which were issued in the previous years. And then the nonconvertible bond you showed to the shareholders, both these bonds have been issued without consideration as part of the dividend to the shareholders. And the nonconvertible bond will be redeemed in cash on the due date. Other liabilities than the current tax payables, deferred tax liabilities, so total liabilities OMR 158 million. On the equity side, there's nothing -- not much changes. We continue to have [ paid up ] capital of OMR 31.5 million, same as the last year. Share premium account is same. Legal reserve, we have reached the maximum required for legal reserve. Therefore, there's no change. You need to have 33% of your paid-up capital as legal reserve. Thereafter, there is no obligation to make any further legal reserve. So the special reserve for nonperforming assets as a matter of abundant precaution continues to appear in our books. Cash flow hedge is 1.98. That's because of the power curve cover on our dollar-based loans, [indiscernible] earnings are marginally lower. That's because it reflects the dividend paid in March of last year. Similarly, the net asset value is [ 213 ]. Gentlemen, I want to come back a little bit to our cash position or cash and deposit position, like I'm sure a lot of people -- a lot of you may have questions on why we continue to hold this level of deposits. Our deposits remain unchanged at about OMR 85 million. Yes. Our deposits remain at OMR 90 million. Now these deposits have been [indiscernible] we are able to -- the primary reason why we continue to hold this deposit, yes, as and when we believe there is a substantial growth or where as and when we see the opportunities that arise in the marketplace, which fit into our criteria, we will be in a position to capitalize those opportunities, those lending opportunities and increase our asset size. So that's the very primary reason why we continue to hold on. But while we are holding on to them, they are not coming at a net cost to the company. We are able to leverage them properly. And as a result of which, we have one of the lowest cost borrowing as compared to our peers. There's at least a benefit of about 100 to 125 basis points in our borrowing cost net, as well as this, we are able to leverage this properly and increase our income. So that's the primary purpose. And in spite of the deposits that we hold, we continue to have banking facilities available to us, which are not utilized fully. That means there is a gap apart from this OMR 90 million, we will have an other -- another OMR million in banking facilities. So that comes to almost OMR 110 million -- so OMR 80 million, sorry, my mistake, OMR 80 million. So that comes to about OMR 170 million. So that is a position why we continue to have, I hope it answers some of your doubts. Here is a very brief -- we don't want to get into a kind of a comparison. These are the numbers from the published figures. They would help you to understand Al Omaniya's performance, Al Omaniya's business model vis-a-vis our peers and who are in this right? So we have a total of 5 nonbanking financial institutions, in Oman. All of them are very well capitalized, and they have a long standing. But some of the fundamental figures we have -- are presenting to you. The top line here, which shows you the size of the assets. So in asset size, we are -- we are ranked #3. Nonperforming loans, as usual, we are the lowest and lowest by far. Both if you look at the nonperforming loans as a percentage of our assets, which is, I think, one of the best measures to see what kind of quality -- what quality of credit do you really write. What is the -- whether you are into prime or sub-prime or prime plus category is reflected in what is the percentage of the loans that have become nonperforming cumulative. Our cumulative nonperforming loans are 2.58% as compared to some of our peers a 31%, 12%, 12%, 41%. I think the industry average would probably come to about 18.5% to 19%. Compared to that, we are 2.5%. Our provision cover is 539% as compared to the lowest in industry, 62%. Now the reason why we continue to maintain this high level of provisioning simply because we are also in large capital and large corporates. And so we do a bit of syndication, and we believe that to keep -- to look at what's happening in the future. And that's a test that we want to guide for, however remote it might be. And this is not really coming out out of the provisions made in the current year. This is the provision that we are carrying forward historically. And therefore, we believe that in the last 1 or 2 years now, especially, they are not really impacting our income statement. In fact, for the year 2025, we had to write back about OMR 300,000 in provisions simply because the -- our record [ ROS ] model required that we had to write back, just the OMR 300,000. So we continue to be very well provided, very omes, very high liquidity and as compared to our peers, we are way below in terms of the NPLs. Now in terms of our prognosis, we believe that we'll continue to outperform the growth in the GDP that's our stated objective, and hoping that the growth in the economy will be substantial. It looks very -- at the time being, it looks very encouraging. Oil prices are much higher than what the budget estimates of OMR 80 now. I think this surplus is also expected to be higher. We also have seen a much larger allocation for the development expenditure. Government is continuing to focus on diversifying the economy and the GDP away from the oil and gas sector, including alternate energy. I think we're doing a fantastic progress on the hydrogen fuel right? And both on the tourism sector, we are, I think, making a lot of progress, hospitality. These are some of the growth areas that we see. We also see some growth emitting into the health care sector, tourism and so on. So I think we are hopefully barring geopolitical situation. I think we are looking forward to our performance, good performance in the year 2026. Gentlemen, we have been awarded -- with even many awards, but there's one single award that stands out that we just like to show you. This award is not a really award. This is based on an independent public survey done by Apex Publications. And this is on the basis of the outing in the survey where the people at, large institutions at large, nominated or oath for the Top Brand in each category. I'm pleased and proud gentlemen, this is the fourth year in a row, Al Omaniya has been noted as the #1 brand, the most trusted brand in the nonbanking financial institution sector. This is something that, I mean, validates what we do, take -- increases us to do better, and meet the standards and the expectations that people of Oman and our clients, customers, banks and the regulators have of Al Omaniya. We will work very, very hard to ensure that we work with the same transparency, integrity and bring about the best possible products to our customers, and to set the standard in the corporate governance. Okay. I have finished a little early gentleman to give almost a little more than half an hour to [indiscernible] your questions and clarifications, questions whatever you would like to answer, whatever we can, we'll certainly. Happy to provide you. So I would request you to introduce yourself and also tell us the company or the institution that you represent and then ask a question. Will kindly request you to reduce -- not to -- I mean, have a commentary -- but you can always do a small explanation rational behind the question, and we'll be quite happy to take them up. Thank you, very gentlemen. Please go ahead.

Am I audible?

Yes, go ahead.

I'll start my questions with the growth in the -- your leasing assets during the fourth quarter. Pretty much whatever growth you showed us from '24 to '25, it was there -- it was achieved in the fourth quarter. Your gross investment finance leases went from OMR 155 million to OMR 64 million. So should we be expecting a more aggressive growth in the upcoming quarters? Or should we expect the normalized 7% to 10% growth for 2026 would be my first question.

All right. Our growth strategy basically has been, like what I say as being within the box and not outside the box. And what we mean by that strategy is that we define the parameters of the [indiscernible] of the kind of credit that we want. The quality of credit we want. And we say that we have got enough resources to write what that quality -- if it presents to ourselves. That's the -- what we have. So we really will not go by quarter-to-quarter and not -- certain to the growth pressures and end up writing business, which is not very satisfactory. But however, this year, we believe that there will be a consistent growth of 7% to 9% in each quarter. That's what we are aiming at.

Sorry, you mentioned 7% to 9% in each quarter. So for the whole year, it would be north of 25%. Is that what you say?

Cumulative. So if we grow on each session, cumulatively, we expect a growth of 10%. Because when you grow at 6%, 7%, we compare it to the quarter of 2025.

Okay. Yes, that makes sense, that was a little confusing because first quarter of '25 was already way less than the fourth quarter of '25. So if you were to put 7% on first quarter, '25, that would come up actually at a lower number. But okay, I get your point on an annual basis, it should be that. Now my second question is you mentioned that on the cash that you have or the deposits that you have on your balance sheet, it actually improved your cost of funding. But from what I'm analyzing this also puts a dent on your overall yields on investments. And as a result, the total return on equity generated on your company is a little bit less than the peers. So wouldn't it be better because, obviously, you guys have such a good credit rating and such a good credit standing with the banks. Would it be better if you were to pay this off? And then whenever you have the chance to grow your book, you can go to any bank and then no bank would be shy away from giving you a debt is my understanding, please?

When you -- when you sit on this kind of liquidity, right, which gives you the ability to pay off any of your lender -- many times, we have been independent some of the large lenders in the country. As a financial institution, we can be independent of some of the large lenders that speaks volumes for instance. Now what does this cash really do to us. Number one, that I said, it does actually, it raises the yield on our equity because it gives us an arbitrage. First of all if you had -- if you have made the comparison of the average cost of borrowing and the Al Omaniya borrowing, we are about 150 basis points lower than the -- our nearest peer. Now our current borrowing is about OMR 130 million, OMR 140 million, right? But if you take 1.5% on that, that itself will amount to over OMR 1 million. Number one. Two, it also gives us some level of arbitrage. So net-net, we don't lose money on this, but gives us a tremendous amount of strength and the negotiating ability. And I hear a lot from my own peers saying wish we only could do this, wish we only could do this. But since we have established this and we had the ability to borrow, right, and that's the reason why we'll continue to maintain because we see a lot of positives coming from this strategy. And like I said -- sorry, I didn't get your name. Mr...

[ Shahoor ].

Like I said, we -- in spite of this OMR 90 million, we still have OMR 80 million in unutilized banking facilities. So having this cash is not constraining our ability to write more business. By imagine if there are opportunities. And it's not really that it gives you an opportunity for both what you call organic as well as inorganic growth. So you'll never know when the opportunities will arise. So actually, that gives us about OMR 90 million plus OMR 80 million, OMR 170 million, if we really want to go out and find the right kind of businesses.

And my last question, if you allow. My last question is that on your asset side, on the yield of our leasing assets. We have seen that Al Omaniya because of such high quality assets that you guys have, your yield is a little bit lower than the peers as well. Assuming that because risky assets require higher yields and lower risk requires a lower yield. With this growth plan that you have in mind of 7% to 9%, should we be expecting an increase in the yield on your leasing assets as well?

What we -- I mean all this, [ Shuhoor ], so I just want you to know nothing. Let's say now, as compared to our peers, I quickly hear with you that our yields are lower, right? But then if our yields are lower, we continue to pay one of the highest dividends in the country. Now excepting for say this year when fell of the peers paid a little higher. Look at the track record. Now -- if you look at the 5 companies, what is [indiscernible], what is the average dividend paid? So actually dividend and profitability is not necessarily a function of at what rate you lend because that's not your real income. You can go out in the market and lend. But then if you need a substantial provision that cuts out your income, one. Two, you must -- you will be aware that the regulators or financial institutions require that you need the permission when you declare the dividend. That is a standard policy back if your provisioning level is less than 10% of -- and it is not a net negative, then you are not allowed generally to pay a dividend of more than 60% of your profits. Now does that makes sense to you that we consistently pay out a 90% ratio on our cash. Now you -- if your provisioning level, we just sometime ago presented to you what is the NPL and provisioning level of the peers, None of them have 100%. Now so you declare a higher profit, but you are not in line with provisioning to declare 80% or 90% property. That means you're paying a much higher charges, and we are not able to pay out to shareholders. So unless the profit translates into a dividend. Our real retained earnings, not accounting retained, it doesn't make sense. So what we are saying is that in spite of the low yields that we have, which I agree with you, this will not allow that to impact what we pay out to our shareholders. Please, anybody else has a question.

Can you hear me?

Yes, go ahead.

My name is Rao Amir Ali. I am Analyst at [indiscernible] Capital. I have a couple of questions. My first question is that so rightly mentioned that we are really low compared to the peers. Can you please give us -- what is the yield on [indiscernible] capital and retail portions and the corporate.

Can you -- you're not very clear. Can you be a little loud?

Can you give us a breakup on what are the yield on the retail, on working capital?

Okay. Most of the -- on an average, we can tell you that our yields on the retail, which is our car loan and the white good portfolio will be in the range of about than 9% to 10.5% IRR. So on the retail portfolio, which is basically the car loans that we have and the white goods that we have. The average yield is between 9.5% to 10.5% IRR, not a flat, okay. Now as the corporate lending is a function of going -- Yes, so the corporate lending is a function of many, many things. It depends upon the clients' ability to negotiate. It depends upon what kind of facilities it has. It depends upon what kind of securities they offer. And primarily, it also depends upon what is the lending tenure. See we are at the every end of the lending segment. That means we lend from 90 days to 12 years. The syndicated loans may go for 12 years, 10 years and some of our working capital facilities may be just for 90 days. So there will be a wide variation in the rate. I'm not able to actually tell you what exactly rate because it differs from client to client. And as I told you, we deal with very large -- very, very large corporates, very large family businesses, and we deal with very large listed companies. And those rates will be in line with what the commercial banks line. We are not in competition of this segment with our other finance companies. We are in competition with the banks. And since we have the ability to borrow low and keep our cost of funds low. We, therefore, we have developed this ability to be able to compete in this particular segment and have higher market share in that.

I have one more question. We have booked on payment reversal during 2025, and even the impairment cost was low, around OMR 558 million compared to OMR 2.1 million in 2023. So what are the reason for reversal? And can we see the same trend in 2026.

Yes. So your question is -- you see the provision is basically a function of your the models -- IFRS model that we have. Each of these models are what you call evaluated by the -- some of these large audit firms, right, every few years. And this also has to be in principle to the -- your regulator has to be happy with that. Now many times, Mr.Rao, what happens is that, say, for example, even -- the model require that we take into account both the micro and the macro economics, both within the clients' business segment within his own business as well as the external environment, right? For example, say the oil prices are low, not deficit goes up, right? Then suddenly, what happens is that in the model, we have to give slightly lower rating, which increases the provision. Similarly, in a particular industry, say, oil and gas industry, for example, if the oil prices were to fall below a particular level, then automatically, our wattage that we had to attach for those segments of the industry will be slightly higher. So even if a micro unit is doing quite well, has no payment problem. There is no default. But in spite of that, if the industry as a whole at the macro level, is according to what you call the IFRS model that -- the rates that have been attached. So the provision can go up. So what happens is sometimes this is a very technical matter, is not necessarily related to an actual default. Actual default, obviously, will carry the provision. Sometimes even if we don't have a default, right, and even in such cases, a particular client falls into a particular industry segment, which has got a lower rating because of macroeconomic factors, then the provision goes up. So that's the how the whole IFRS model build. And generally, as Al Omaniya, we are rather ear on the side of caution than be aggressive. I hope that answers your question. Go ahead gentlemen. We still have some time, and we will be happy to answer if you have any questions.

I think that there are no more questions Aftab.

We will close the session at sharp 3 pm. That's what we require to. What's the -- sorry at 4. So we'll keep [indiscernible] so we'll wait for that. So go ahead, gentlemen, if you have anything, we're still here. I will be here for another 5, 6 minutes. If anybody has any questions, please. All right. And gentlemen, I think we had over 2 minutes. Thank you for each one of you and for engaging us in this session. We are delighted that all of you participated in this. There's was robust question-and-answer session. I hope our presentation was useful to you. And in case you have any queries, we are always open. Our information is a little bit on the website as well as it is available on the MSX website. And thank you very much. And I hope you have -- and have a very pleasant evening. Thank you.