• Company News
 HSBC BANK OMAN S.A.O.G. RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

HSBC BANK OMAN S.A.O.G.

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

HSBC Bank Oman S.A.O.G. (‘HBON’) announces that at the Board of Directors’ (the ‘Board’) meeting held on Wednesday, 29 July 2015, the Board approved HBON’s unaudited financial results for the six months ended 30 June 2015.

 

  • Net profit was down by 8.8% to RO5.2m (compared to RO5.7m for the same period in 2014) mainly due to an increase in loan impairment charges and operating expenses.

  • Net operating income before loan impairment charges increased by 5.9% to RO36.1m (compared to RO34.1m for the same period in 2014) due to higher net interest income, net fee income and other operating income.

  • Net interest income increased by 4.3% to RO24.1m (compared to RO23.1m for the same period in 2014) due to an increase in corporate loans and advances.

  • Net fee income increased by 9.7% to RO6.8m (compared to RO6.2m for the same period in 2014) due to higher fees from the trade finance business.

  • Other operating income of RO1.6m (compared to RO0.5m for the same period in 2014) due to 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 RO2.2m has been reported for loan impairment charges mainly from retail specific provisions of RO1.4m and a corporate general provision charge of RO1.5m resulting from an increase in corporate loans and advances. These were partly offset by a recovery of RO1m from corporate customers (compared to a net charge of RO1.2m for the same period in 2014).

  • Operating expenses increased by 4.5% to RO27.7m (compared to RO26.5m for the same period in 2014) due to the combined effect of one-off expense reversals in the prior year and a current year increase in operating expenses.

  • Loans and advances, net of provisions and reserved interest, increased by 15.7% to RO1,314.7m due to an increase in corporate loans and advances (compared to RO1,136.6m as at 30 June 2014). Customer deposits marginally decreased by 0.8% to RO1,945.2m (compared to RO1,960.1m as at 30 June 2014) with the loans: deposit ratio at a healthy 67.6%

  • HBON’s capital adequacy ratio stood at 17.5% as at 30 June 2015 (compared to 18.4% as at 30 June 2014), representing a continuing strong capital base for future growth.