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 Draft audited annual financial results for the year ended 31 December 2012 for HSBC Bank Oman S.A.O.G.
HSBC Bank Oman S.A.O.G (HSBC Bank Oman) announces that at the Board of Directors’ (the ‘Board’) meeting held on Tuesday, 29 January 2013, the Board approved HSBC Bank Oman’s draft audited annual financial results for the year ended 31 December 2012.
 
· Net interest income was up by 81.5% to RO40.1m (compared to RO22.1m for the year ended 31 December 2011).
· Total other operating income improved by 60.2% to reach RO20.4m.
· Loan impairment charges net of recoveries was RO4.6m. Non-performing loans as a percentage of total loans increased from 1.2% in 2011 to 7.1% in 2012 with a coverage ratio of 89.4%.
· Operating expenses rose to RO48.7m, primarily due to integration expenses of RO13.9m.
· Net profit was down by 62.7% to RO5.8m (compared with RO15.5m for the same period in 2011).
· Earnings per share were RO0.004 compared to RO0.016 in the previous year.
· Loans and advances, net of provisions and reserved interest, rose to RO1,194m (compared with RO454m for the same period in 2011).
· A capital adequacy ratio of 16.03% (compared with 17.25% for the same period in 2011).
· The Board of Directors proposes a cash dividend of RO0.001 per share (nominal value per share of RO0.100) amounting to RO2.0m for the full year 2012.
 
The draft audited annual financial results and proposed cash dividends for the year ended 31 December 2012 are subject to the approval of the Central Bank of Oman and the shareholders of the bank.