02 May 2012
MUSCAT -- Oman International Bank (OIB) plans to install 212 new ATMs across the Sultanate before the end of this year.
According to Dr Juma Ali Juma al Juma, Chairman of the Board, the state-of-the-art machines will replace OIB's existing 105 ATMs, as well as extend the Bank's ATM nationwide coverage. Already, 39 new ATMs have been installed in the first quarter of this year, he stated in the Board of Directors' Report of OIB's financial performance for the first quarter of this year.
Commenting on the planned merger of OIB with HSBC's Oman branch, he said: "The merger will create a major new player in Oman banking sector. This deal is incredibly positive, to develop the bank's business model and build on a strong platform for growth. This is an exceptional opportunity with considerable opportunity to both banks and we will be calling an EGM to recommend the offer to OIB shareholders."
Following the merger, HSBC will hold 51 per cent of the combined entity which will be renamed HSBC Bank Oman SAOG. HSBC will inject additional capital up to RO 37.5 million in cash into HSBC Oman and the business of HSBC Oman will then be merged with OIB.
The HSBC group will provide certain support services to HSBC Bank Oman SAOG under a service agreement with an initial term of 10 years.
The merger is subject to regulatory and other approvals, including approval by OIB shareholders.
An extra ordinary general meeting will be convened shortly in this regard. The transaction is expected to complete in the second quarter of 2012. The merger will not affect OIB's listing on the Muscat Securities Market, the Chairman stated.
Meanwhile, OIB achieved a net profit of RO 2.426 million for the three months ended March 31, 2012 compared with RO 4.436 million for the corresponding period last year. The gross loans and advances stood at RO 796.332 million as at March 31, 2012 as compared to loans and advances of RO 706.344 million as at March 31, 2011.
Total deposits stood at RO 1.019 billion as at March 31, 2012 compared to RO 842.009 million as at March 31, 2011.
Net interest income for the three months was RO 7.726 million compared to RO 7.517 Million for the corresponding period last year. The other operating income was RO 2.785 million as against RO 3.383 million for the comparative period.
Last year, other income included dividend income of RO 1.077 million, primarily from the Investment Stabilisation Fund, Oman. However, this income did not materialise this year due to the decline in the Muscat Securities Market in 2011, the Chairman said.
Operating expenditure was RO 6.004 million as compared to RO 5.434 million for the corresponding three months last year.
MUSCAT -- Oman International Bank (OIB) plans to install 212 new ATMs across the Sultanate before the end of this year.
According to Dr Juma Ali Juma al Juma, Chairman of the Board, the state-of-the-art machines will replace OIB's existing 105 ATMs, as well as extend the Bank's ATM nationwide coverage. Already, 39 new ATMs have been installed in the first quarter of this year, he stated in the Board of Directors' Report of OIB's financial performance for the first quarter of this year.
Commenting on the planned merger of OIB with HSBC's Oman branch, he said: "The merger will create a major new player in Oman banking sector. This deal is incredibly positive, to develop the bank's business model and build on a strong platform for growth. This is an exceptional opportunity with considerable opportunity to both banks and we will be calling an EGM to recommend the offer to OIB shareholders."
Following the merger, HSBC will hold 51 per cent of the combined entity which will be renamed HSBC Bank Oman SAOG. HSBC will inject additional capital up to RO 37.5 million in cash into HSBC Oman and the business of HSBC Oman will then be merged with OIB.
The HSBC group will provide certain support services to HSBC Bank Oman SAOG under a service agreement with an initial term of 10 years.
The merger is subject to regulatory and other approvals, including approval by OIB shareholders.
An extra ordinary general meeting will be convened shortly in this regard. The transaction is expected to complete in the second quarter of 2012. The merger will not affect OIB's listing on the Muscat Securities Market, the Chairman stated.
Meanwhile, OIB achieved a net profit of RO 2.426 million for the three months ended March 31, 2012 compared with RO 4.436 million for the corresponding period last year. The gross loans and advances stood at RO 796.332 million as at March 31, 2012 as compared to loans and advances of RO 706.344 million as at March 31, 2011.
Total deposits stood at RO 1.019 billion as at March 31, 2012 compared to RO 842.009 million as at March 31, 2011.
Net interest income for the three months was RO 7.726 million compared to RO 7.517 Million for the corresponding period last year. The other operating income was RO 2.785 million as against RO 3.383 million for the comparative period.
Last year, other income included dividend income of RO 1.077 million, primarily from the Investment Stabilisation Fund, Oman. However, this income did not materialise this year due to the decline in the Muscat Securities Market in 2011, the Chairman said.
Operating expenditure was RO 6.004 million as compared to RO 5.434 million for the corresponding three months last year.
© Oman Daily Observer 2012
