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 PRELIMINARY UNAUDITED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013 FOR HSBC BANK OMAN S.A.O.G.
PRELIMINARY UNAUDITED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013 FOR HSBC BANK OMAN S.A.O.G.
 
In compliance with the rules and guidelines on Disclosure by Issuers of Securities and Insider Trading issued by the Capital Market Authority, HSBC Bank Oman S.A.O.G. (‘HBON’) announces its preliminary unaudited annual results for the year ended 31 December 2013.
 
Key highlights:
 
· Net interest income was up by 20.0% to RO48.1m (compared to RO40.1m for the year ended 31 December 2012)
· Total other operating income improved by 0.5% to reach RO20.6m (compared to RO20.5m for the year ended 31 December 2012)
· A net recovery of RO2.2m has been reported for loan impairment charges (compared to a net charge of RO4.6m for the year ended 31 December 2012).  This is due to recoveries from corporate clients and a general provision release due to a reduction in corporate loans and advances in 2013
· Operating expenses increased by 18.7% to RO57.8m (compared to RO48.7m for the year ended 31 December 2012) reflecting the running costs of the merged bank
· Net Profit was up by 87.9% to RO10.9m (compared to RO5.8m for the year ended 31 December 2012)

 
2013
2012
 
RO’000
RO’000
Net interest income 
48,088
40,076
Total other operating income
20,644
20,453
Total operating income  
68,732
60,529
Operating expenses 
(57,840)
(48,734)
Profit for the year    
10,863
5,796

 
The above preliminary unaudited financial results are subject to the approval of the Board of Directors, the Central Bank of Oman and the shareholders of the Bank.
 
As the merger which created HBON in June 2012 was accounted for as a reverse acquisition under International Financial Reporting Standard 3 (‘IFRS 3’) ‘Business Combinations’, the comparative information in HBON’s financial results for the year ended 31 December 2013 is comprised of financial results of HSBC Bank Middle East Limited, Oman branches, for twelve months ended 31 December 2012 and financial results of Oman International Bank S.A.O.G for seven months ended 31 December 2012.