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 DRAFT AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013
HSBC BANK OMAN S.A.O.G.
DRAFT AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2013
 
HSBC Bank Oman S.A.O.G. (‘HBON’) announces that at the Board of Directors’ (the ‘Board’) meeting held on Tuesday, 28 January 2014, the Board approved HBON’s draft audited annual financial results for the year ended 31 December 2013.
 
·   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 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)
·   Loans and advances, net of provisions and reserved interest, decreased by 17.9% to RO980.5m (compared to RO1,194.4m for the year ended 31 December 2012). In addition, customer deposits decreased by 3.2% to RO1,792.7m (compared to RO1,851.6m for the year ended 31 December 2012)
·   HBON’s capital adequacy ratio increased to 20.2% at 31 December 2013 (compared to 16.0% for the year ended 31 December 2012), representing a strong capital base for future growth
·   Earnings per share were RO0.005 (compared to RO0.004 for the year ended 31 December 2012)
·   The Board of Directors proposes a cash dividend of RO0.0038 per share (nominal value per share of RO0.100) amounting to RO7.6m for the full year 2013
 
The draft audited annual financial results and proposed cash dividends for the year ended 31 December 2013 are subject to the approval of 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 12 months ended 31 December 2012 and financial results of Oman International Bank S.A.O.G for seven months ended 31 December 2012.