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HSBC Bank Oman profit leapfrogs

January 29, 2014

Times News Service

Muscat : HSBC Bank Oman, which was formed after a merger between HSBC Bank Middle East's branches in the Sultanate with Oman International Bank in June 2012 , said yesterday its 2013 net profit surged ahead by 87.9 per cent to OMR10.9 million . The board of directors proposed a cash dividend of 3.8 baisas per share with a nominal value per share of 100 baisas, amounting to OMR7.6 million , representing a 280 per cent increase over the previous year. It is subject to approval of the Central Bank of Oman and the bank shareholders at the annual general meeting. The bank's net interest income increased by 20 per cent to OMR48.1 million in 2013, while operating expenses rose by 18.7 per cent to OMR57.8 million , reflecting the running costs of the merged bank. Operating cost However, market analysts said that high operating cost must have dragged down the bank's net earnings in the fourth quarter, which was not in line with the market expectation. As a result, the bank's share prices declined by 4.54 per cent to 168 baisas amid 1.14 million shares changing hands on the Muscat Securities Market (MSM) yesterday. "We have increased our proposed dividend payout to reflect our long-term strategy to deliver value to our shareholders while ensuring we build a strong capital base for growth," said David Eldon , chairman of HSBC Bank Oman. "In 2013, we saw continued progress and innovation in our products and services, and we have worked diligently to enhance customer service and operations in line with global HSBC standards. Through our community engagement activities, intensive staff training programmes and branch enhancement projects, we have reinforced our commitment to Oman and its people, building on the significant progress in 2012," he added. Omani executives Eldon also said that HSBC Bank Oman's management team has ensured that operational, strategic and cultural elements of both OIB and HSBC Oman have now been fully integrated. Looking forward to 2014, Eldon said that HSBC Bank Oman will continue to enhance its customers' experience and connect them to more opportunities, grow business profitably, invest in its people and systems, and ensure the bank operates to the highest of global regulatory standards to achieve its aspiration of becoming the leading bank in Oman . "In 2013, we successfully enhanced our nationwide branch and ATM network, appointed three new senior Omani executives in key strategic businesses, who bring extensive local and international experience to the bank, introduced a two-year graduate programme for emerging Omani talent, and delivered more than 6,500 classroom and e-learning training days to over 1,100 employees," said Ewan Stirling , the chief executive officer of HSBC Bank Oman. ATM network HSBC Bank Oman is the second largest bank in the Sultanate by branch network, operating an extensive network of more than 80 branches and over 120 ATMs across the country.

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Source: Times of Oman

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