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 RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2015

HSBC BANK OMAN S.A.O.G.

RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2015

HSBC Bank Oman S.A.O.G. (‘HBON’) announces that at the Board of Directors’ (the ‘Board’) meeting held on Monday, 27 April 2015, the Board approved HBON’s unaudited financial results for the three months ended 31 March 2015.

  • Net profit was up by 22.6% to RO3.8m (compared to RO3.1m for the same period in 2014) due to an increase in net operating income before loan impairment charges.
  • Net operating income before loan impairment charges increased by 15.5% to RO18.6m (compared to RO16.1m for the same period in 2014) due to higher net interest income, net fee income and other operating income.
  • Net interest income increased by 5.2% to RO12.1m (compared to RO11.5m for the same period in 2014) due to an increase in corporate loans and advances.
  • Net fee income increased by 37.5% to RO3.3m (compared to RO2.4m for the same period in 2014) due to higher commitment and facility fees from corporate customers.
  • Other operating income has been reported of RO1.5m (compared to RO0.02m for the same period in 2014) due to booking a gain on sale of HBON’s India operations of RO0.8m (net of tax) and a gain on sale of investments of RO0.7m.
  • A net charge of RO0.8m has been reported for loan impairment charges mainly from retail specific provision of RO0.6m and corporate general provision charge of RO0.6m from an increase in corporate loans and advances, partly offset by a recovery of RO0.5m from corporate customers (compared to a net charge of RO0.2m for the same period in 2014).
  • Operating expenses increased by 8.1% to RO13.3m (compared to RO12.3m for the same period in 2014) due to the combined effect of one off expense reversals in the prior year and current year increase of operating expenses.
  • Loans and advances, net of provisions and reserved interest, increased by 20.5% to RO1,226.0m due to an increase in corporate loans and advances (compared to RO1,017.1m as at 31 March 2014). Customer deposits marginally decreased by 0.1% to RO1,945.4m (compared to RO1,948.1m as at 31 March 2014).
  • HBON’s capital adequacy ratio stood at 17.8% as at 31 March 2015 (compared to 19.8% as at 31 March 2014), representing a continuing strong capital base for future growth.