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 RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014

HSBC Bank Oman S.A.O.G. (‘HBON’) announces that, at the meeting of the Board of Directors of HBON held on Monday, 27 October 2014, the Board approved HBON’s unaudited financial results for the nine months ended 30 September 2014.

  • Net profit was down by 25.2% to RO9.5m (compared to RO12.7m for the same period in 2013, which had benefitted from significant recoveries and the release of a portion of the general provision following the sale, and other managed reductions, of assets).
  • Net operating income before loan impairment charges increased by 2.1% to RO53.0m (compared to RO51.9m for the same period in 2013) due to higher net interest income, dividend income and fee income.
  • Net interest income increased by 1.4% to RO36.5m (compared to RO36.0m for the same period in 2013) due to a reduction in high cost corporate deposits and an increase in corporate assets.
  • Total other operating income increased by 3.1% to RO16.4m (compared to RO15.9m for the same period in 2013) due to higher dividend income and higher structuring and facility fees from corporate customers.
  • A net charge of RO2.6m has been reported for loan impairment charges (compared to a net recovery of RO3.8m for the same period in 2013 due both to recoveries mainly from corporate clients of RO2.1m as well as a general provision release of RO1.7m due to a reduction in corporate loans and advances).
  • Operating expenses increased marginally to RO40.7m (compared to RO40.5m for the same period in 2013).
  • Loans and advances, net of provisions and reserved interest, increased by 12% to RO1,138.5m due to an increase in corporate assets (compared to RO1,016.2m at 30 September 2013). Customer deposits decreased by 6.6% to RO1,800.3m due to a reduction in corporate deposits (compared to RO1,927.8m at 30 September 2013).
  • HBON’s capital adequacy ratio stood at 17.9% at 30 September 2014 (compared to 19.0% at 30 September 2013), representing a continuing strong capital base for future growth.