The Financial Corporation Company SAOG (FINC) Earnings Call Transcript & Summary

[Foreign Language]

Good morning, esteemed investors, analysts and valued stakeholders. On behalf of the Financial Corporation, FINCORP, I extend a warm welcome to all of you joining for this discussion session. We appreciate your time and interest in our company's financial performance. Today, we will be reviewing the results of our company for the year 2024 and comparing them with the year 2023 performance. Our presentation will focus on 3 main areas: organizational review. This segment will be presented by Parth Mehta, who will be providing insights into our company's structure, strategy and key developments, financial performance and results. Mr. Ehab Alexan will walk us through FINCORP's financial performance, key highlights and comparative results between 2023 and '24. Market overview. [ Ms. Kushari ] will provide an analysis of the market landscape, key trends and their potential impact on the business. Following our presentation, we will open the floor for a question-and-answer session where our team will address any questions you may have. We kindly request you to hold your questions until the designated time. Before we proceed, we would like to start with our disclaimer. The presentation consists of statements and information relating to FINCORP. The financial information in the presentation is audited and has been disclosed on MSX website and is for information purposes only. This presentation is not and should not be considered as an offer, invitation or recommendation to buy, sell or trade in any product or services. Neither this presentation nor anything stated in it shall form the basis for any contract or commitment. Any information or past performance contained in this presentation must not be considered as an indication or guarantee for future performance. This presentation is not to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any investor. Any future outlook statement of comments is associated with known and unknown risks and uncertainties, hence this presentation provides no guarantees or commitment for any future results of FINCORP irrespective of whether stated explicitly or implied. To the extent that anyone has any questions regarding the contents of the presentation discussed above, he or she is encouraged to consult with a professional adviser of his or her choosing and FINCORP does not take any responsibility for such understanding. The information contained in the presentation is proprietary in nature and for information purposes only. By entering this session, viewing the presentation and accessing the disclosures about the presentation, the viewer/reader is bound by the above conditions. With that, let's begin. So we will go through the organization review, financial performance for the year '24, market overview, and then we'll open the floor for question and answers. So the company overview, FINCORP is one of the oldest investment management company and was established in the year 2003 and based in Oman and listed on the Muscat Stock Exchange. The company is licensed to provide brokerage, margin finance, portfolio management and fund management services. FINCORP offers services to corporates, pension funds, high net worth individuals and retail investors to invest in MSM, GCC and globally listed markets, notably in United States, India, European Union through its mutual fund and portfolio management and brokerage offerings.

Okay. Basically, FINCORP income is coming from 3 basic activities. One is the brokerage and one from the investment management and the third is from proprietary investments. For the brokerage, FINCORP is offering services for local, GCC and international. For investment management, it offers portfolio management, mutual fund investments and fund administration. Proprietary investments have mandate for local, GCC and international. Now let's go for the results for '24 comparing to the results of '23. Can you -- as you can see here, the total income in '24 was OMR 616,000 versus OMR 738,000 last year. The profit from operation this year was OMR 78,000 versus OMR 251,000 last year. Net profit -- actually this year is what -- it is not -- net losses, OMR 433,000 versus net profit of OMR 708,000 last year. And here is our balance sheet. The total assets in '24, OMR 8,498,000 versus OMR 833,000 (sic) [ OMR 8,331,910 ] in '23. The total equity in '24 was OMR 7,090,000 versus OMR 7,524,000 last year. I leave the floor to [ Ms. Kushari ] for the market overview.

Good morning, everyone. So here, we would like to share our market overview for GCC region. So economic growth in the GCC region is projected to accelerate in 2025 and '26 for the -- for around 4.2%. In 2024, the growth was -- remained in the range around 1.6%. Mainly the growth contributor here is coming from non-oil sectors, which is continuously again showing robust growth of 3.7% as per the data released by World Bank. OPEC+ has intimated that they will try to reduce the oil production around 1.65 million barrels till December 2026. And voluntarily, there is a new addition of 2.2 million barrels per day. Extension will be carried up to March 2025. And after March 2025, there will be gradual increase in the production, as stated by OPEC+ very recently. GCC inflation remained very low and quite stable at 2.1% during this year, which is highly supported by subsidies, fuel price caps and currency packs with dollar. So our market view for the international markets here mainly is coming from the various international markets like United States, European markets and other emerging markets. So the most of the international markets and the other emerging markets, the increase was mainly contributed by the monetary tightening policies and the shift in the interest rates by the many or major of the central banks. After United States elections and Mr. Trump is back in power again, there is a visible pressure on non-U.S. regions, which will again further introduce unusual complexity to international stock markets. After Mr. Trump's introduction again in the U.S. administration, there will be U.S. trade policy and there will be much more higher uncertainty, tariffs on the Europe region. Afterwards, even Japan is facing some hawkish monetary policy and effects and the political uncertainty also present new risk therein. China is going to have the major impact of the U.S. administrative decisions. Afterwards, they are also struggling with the property market and some deflationary pressures. So we would like to now open the floor if there are any questions.

We take this opportunity to express our gratitude to His Majesty Sultan Haitham Bin Tariq for his wise leadership and progressive vision that continues to lead the country along the path of growth and prosperity. We wish to extend our appreciation to all officials and staff of the Muscat Securities Exchange, Capital Market Authority and Muscat Clearing and Depository Company for their valuable cooperation and support. Finally, we wish our Board members for their valuable guidance and all our staff for their spirited contribution for holding on during these times, shareholders for their faith and our esteemed clients for their confidence, trust and support extended to FINCORP. Thank you and Ramadan Kareem.

Thank you.

Thank you.