(MENAFN- Muscat Daily) HSBC Bank Oman reported a 87.9 per cent growth in net profit to RO10.9mn for the full year 2013, as compared with a net profit of RO5.8mn in the previous year, according to the bank's filing with the Muscat Securities Market (MSM) on Wednesday.
The board of directors has proposed a cash dividend of 3.8bz per share with a nominal value of 100bz per share, amounting to RO7.6mn.
This was the bank's first full-year performance as an integrated entity, following the merger of HSBC Bank Middle East's Oman operations with Oman International Bank (OIB) in June 2012.
The bank's net interest income was up by 20 per cent to RO48.1mn in 2013, compared with RO40.1mn in 2012. The bank's total other operating income improved marginally to RO20.6mn, from RO20.5mn in the previous year.
The bank's operating expenses increased 18.7 per cent to RO57.8m, reflecting the running costs of the merged entity.
HSBC Bank Oman's loans and advances, net of provisions and reserved interest, decreased by 17.9 per cent to RO980.5mn, compared with RO1.19bn for the year ended December 31, 2012. Customer deposits decreased by 3.2 per cent to RO1.79bn, from RO1.85bn in the previous year.
The bank reported a net recovery of RO2.2mn for loan impairment charges, compared with a net charge of RO4.6mn in 2012. ''This is due to recoveries from corporate clients and a
General provision release due to a reduction in corporate loans and advances in 2013,'' the bank said in its filing.
The board also approved the financial results, which are now subject to the approval of the Central Bank of Oman and shareholders at the annual general meeting.
''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," David Eldon, chairman of HSBC Bank Oman, said in a press release.
He added, ''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.''
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.
Chief Executive Ewan Stirling said, ''As part of the HSBC Group, we are taking tangible steps to set the industry standard for knowing our customers and detecting, deterring and protecting against financial crime.''
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 count
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