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 HSBC BANK OMAN S.A.O.G. RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015

HSBC BANK OMAN S.A.O.G.

RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015

 

HSBC Bank Oman S.A.O.G. (‘HBON’) announces that at the Board of Directors’ (the ‘Board’) meeting held on Wednesday, 28 October 2015, the Board approved HBON’s unaudited financial results for the nine months ended 30 September 2015.

 

  • Net profit was down by 14.7% to RO8.1m (compared to RO9.5m for the same period in 2014) due to there being no repetition of the one-off tax reversal booked in 2014.

  • Net operating income before loan impairment charges increased by 1.5% to RO53.8m (compared to RO53.0m for the same period in 2014) due to higher net interest income, net fee income and other operating income.

  • Net interest income increased by 0.3% to RO36.6m (compared to RO36.5m for the same period in 2014) due to an increase in corporate loans and advances.

  • Net fee income increased by 2.1% to RO9.7m (compared to RO9.5m for the same period in 2014) due to higher fees from the trade finance business.

  • Other operating income of RO1.7m (compared to RO0.6m for the same period in 2014) was due to a gain on sale of HBON’s India operations of RO0.8m and a gain on sale of non-core investments of RO0.7m.

  • A net charge of RO2.9m has been reported for loan impairment charges arising mainly from retail specific provisions of RO2.5m and a corporate general provision charge of RO1.1m itself resulting from the increase in corporate loans and advances. These were partly offset by a net recovery of RO1.0m from corporate customers (compared to a net charge of RO2.6m for the same period in 2014).

  • Operating expenses increased by 1.2% to RO41.2m (compared to RO40.7m for the same period in 2014).

  • Loans and advances, net of provisions and reserved interest, increased by 13.2% to RO1,288.8m (compared to RO1,138.5m as at 30 September 2014) due to an increase in corporate loans and advances. Customer deposits increased by 4.5% to RO1,881.2m (compared to RO1,800.3m as at 30 September 2014) with the loans: deposit ratio at a healthy 68.5%.

  • HBON’s capital adequacy ratio stood at 18.1% as at 30 September 2015 (compared to 17.9% as at 30 September 2014), representing a continuing strong capital base for future growth.