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 HSBC BANK OMAN S.A.O.G. DRAFT AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015

HSBC Bank Oman S.A.O.G. (‘HBON’) announces that at the Board of Directors’ (the ‘Board’) meeting held on Wednesday, 27 January 2016, the Board approved HBON’s draft audited annual financial results for the year ended 31 December 2015.

 

  • Net profit was up by 5.7% to RO12.9m (compared to RO12.2m for the year ended 31 December 2014) due to an increase in net operating income before loan impairment charges and a reduction in operating expenses.

     

  • Net operating income before loan impairment charges increased by 3.5% to RO73.5m (compared to RO71.0m for the year ended 31 December 2014) due to higher net interest income and other operating income.

     

  • Net interest income marginally increased by 0.6% to RO49.2m (compared to RO48.9m for the year ended 31 December 2014) due to an increase in corporate loans and advances.

     

  • Net fee income stood at RO12.5m (compared to RO12.6m for the year ended 31 December 2014).

     

  • Other operating income of RO4.5m (compared to RO1.5m for the year ended 31 December 2014) was due to a gain on the sale of HBON’s India operations of RO0.8m and a gain on sale of non-core investments of RO4.6m which were partly offset by the loss on sale of HBON’s Pakistan operations of RO1.2m.

     

  • A net charge of RO3.4m has been reported for loan impairment charges (compared to a net charge of RO2.9m for the same period in 2014) arising mainly from retail specific provisions of RO3.7m. These were partly offset by a net release of RO0.3m from corporate provisions.

 

  • Operating expenses reduced by 1.1% to RO54.7m (compared to RO55.3m for the year ended 31 December 2014) due to the non-recurrence of prior year one-off expenses in 2015 and tight control on direct costs.

     

  • Loans and advances, net of provisions and reserved interest, increased by 3.4% to RO1,200.8m (compared to RO1,161.3m as at 31 December 2014) due to an increase in corporate loans and advances. Customer deposits decreased by 2.7% to RO1,802.3m (compared to RO1,852.3m as at 31 December 2014).

     

  • HBON’s capital adequacy ratio stood at 19.4% as at 31 December 2015 (compared to 18.2% as at 31 December 2014), representing a continuing strong capital base for future growth.

     

  • Earnings per share were RO0.006 (unchanged from the year ended 31 December 2014).

     

  • The Board of Directors proposes a cash dividend of RO0.0039 per share (nominal value per share of RO0.100) amounting to RO7.8m for the full year 2015.

     

    The draft audited annual financial results and proposed cash dividends for the year ended 31 December 2015 are subject to the approval of the Central Bank of Oman and the shareholders of the bank.