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HSBC Oman logs 88% rise in profit, plans dividend

January 30, 2014

Staff Reporter MUSCAT HSBC Bank Oman posted an 87.9 per cent rise in net profit at 10.9 million rials in 2013 against 5.8 million rials in the previous year. The board after approving the audited annual financial results proposed a cash dividend of 38 baisas per share, which would amount to 7.6 million rials for the merged entity, according to a filing to the Muscat Securities Market on Wednesday. The bank had a net recovery of 2.2 million rials for loan impairment charges against a net charge of 4.6 million rials the previous year. This, according to the bank, was owing to recoveries from corporate clients and a general provision release, following a reduction in corporate loans and advances in 2013. The bank's loans and advances, net of provisions and reserved interest decreased by 17.9 per cent to 980.5 million rials against 1,194.4 million rials in the previous year. Customer deposits too dropped 3.2 per cent to 1,792.7 million rials when it was 1,851.6 million rials last year. Net interest income was up 20 per cent to 48.1 million rials compared to 40.1 million rials in 2012. Total other operating income improved by 0.5 per cent to 20.6 million rials . Operating expenses increased 18.7 per cent to 57.8 million rials against the previous year's 48.7 million rials , reflecting the running costs of the merged bank. The bank clarified that as the merger which created the Oman bank in June 2012 was accounted for as a reverse acquisition under International Financial Reporting Standard 3 'Business Combinations', the comparative information in the bank's financial results for 2013 comprised financial results of HSBC Bank Middle East, 12 Oman branches for 2012 and financial results of Oman International Bank for seven months ended December 31, 2012 . The bank's capital adequacy ratio increased to 20.2 per cent when it was 16 per cent last year. OMAN TRIBUNE

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Source: Oman Tribune

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