HSBC Bank Oman names new chairman; to pay 5 per cent dividend

HSBC Bank Oman on Monday announced the appointment of Sir Sherard Cowper-Coles as its chairman following a recent meeting of the board of directors. This change was prompted by the resignation of outgoing chairman, David Eldon, who is assuming additional responsibilities elsewhere in the HSBC Group, according to a press release.

Upon leaving his position as chairman, David Eldon said, “It has been a privilege to serve HSBC Bank Oman through a pivotal period in its history, which has seen it transform into one of the leading banks in Oman. I am confident that under Sir Sherard’s chairmanship, given his long-standing experience in the region as a diplomat and latterly as a senior executive with HSBC Holdings in London, the bank will continue to prosper.” 

Sir Sherard Cowper-Coles said, “I am delighted to take on the role of Chairman for HSBC Bank Oman. Having spent much of my career living and working in the region, and given my role as co-chair with Maqbool Sultan of the Omani British Friendship Association, Oman is a country for which I have a great deal of warmth and affection. The HSBC Group has been in Oman for nearly 70 years. HSBC’s investment in the country and its people remains as important as ever, and we are committed to our role in developing and supporting the local financial services industry.”

“Generating solid shareholder returns through delivery of exceptional customer service remains our core strategy. The board and management team are absolutely focused on this as we continue on our journey to become the leading bank in Oman,” he added.

Sir Sherard brings nearly 40 years of experience of working in the region together with recent experience within the HSBC Group Head Office. In October 2013, he was appointed as the Senior Advisor to the HSBC Group Chairman and Group Chief Executive.

In addition to his new role as Chairman of HSBC Bank Oman, Sir Sherard is also the Group Head of Government Affairs, a Director of HSBC Bank Egypt, as well as the Chairman of the UK arm of the Omani British Friendship Association.

Dividend proposal

HSBC Bank Oman’s board has decided to propose a cash dividend of 5 baisas per share, amounting to OMR10 million for 2016, according to the financial results posted on the MSM website. The annual financial results and proposed cash dividends for 2016 are subject to the approval of the Central Bank of Oman and the shareholders of the bank.

Net profit of the bank increased by 31 per cent to OMR16.9 million for 2016 (compared to OMR12.9 million for the year ended December 31, 2015) due to higher operating income and lower operating expenses partly offset by higher loan impairment charges.

Loans and advances, net of provisions and reserved interest, grew by 18.1 per cent to OMR1,418.4 million (compared to OMR1,200.8 million as of December 31, 2015). Customer deposits increased by 3.6 per cent to OMR1,866.7 million (compared to OMR1,802.3 million as of December 31, 2015).

HSBC Bank Oman’s capital adequacy ratio stood at 18.7 per cent as of December 31, 2016 (compared to 19.4 per cent for the same period of previous year).

Source :Times Of Oman