Customer loans and advances (net of provisions) were 283 million at end of 2005, 28% higher than 2004. The Bank's balance sheet stood at OMR 432 million at end of 2005, which is a 20 % growth from the previous year.

On the Personal Financial Services front we have introduced need-based asset products which are specifically car and home loans products. HSBC is set to meet all types of financing needs of the local market and these need-based products are part of a trend that the bank has introduced to expand its banking horizons. However, our more general personal loans are not restricted and they can be used for buying education, weddings and holidays. But I feel a specific product, in this case car and home loans, will help us better target and serve our market. It also allows us to be more focused on our product development. A further segment we are looking at is the youth market. The youth are our future and therefore we are intending to launch a student package by the end of this year. We will also be launching insurance products.

Earlier this year, we launched the first ever Sale Week in Oman for our personal financial services’ customers. During the promotional period, customers were offered discounted interest rates on various loans and attractive rates for term deposits. This was very successful and we intend to have more such campaigns in the future.

HSBC is poised for an accelerated growth in Oman. Expansion of its operations, introduction of new structured lending products, opening of the new branch in Sohar, etc. all testify that the bank has a strong footprint and will continue to serve customers and the local community as it has done for the past sixty years.
To achieve this we recently received an additional capital of OMR 7 million from our head office in order to meet with the expected asset growth and further our commitment to the country. HSBC Oman’s capital and reserves now stand at OMR 40 million.

In order to expand our banking network, we opened our sixth branch in Sohar in June this year. The new branch provides us with direct access into this dynamic and upcoming market and is an important addition to our network in Oman. It also allows us to forge new direct relationships with individuals and corporates in Sohar through the provision of a wide range of top quality Personal Banking, Corporate Banking and transaction banking services. HSBC, however, financed many important projects and has been very active in Sohar since 2004.

How successful was your factoring service after the launch in the market. How many sectors and industries benefited from it?

HSBC is a world leader in global trade services and is one of the largest international providers of factoring services. Over the last two years, we have arranged a road show that covered the entire Middle East region in order to introduce factoring to all customers. Members of the business community attended seminars hosted by HSBC and many have already benefited from them.

Factoring Services are designed to assist businesses with financing against their outstanding invoices for both domestic and international sales. It allows businesses to tap into the potential of their sales and frees up their valuable time and resources – turning sales invoices into cash flow. Many companies have benefited from our factoring services as the bank looks after receivables and payables management, thereby allowing them to focus on their core business.
We also have a team of dedicated professionals to ensure that payments are collected efficiently and who will at the same time promote a stronger seller-buyer relationship.

How supportive are you towards social responsibilities, when was your best campaign conducted and whom did it target?

The HSBC Group has two major focuses for its corporate social responsibility; the first is the environment and the second is education, particularly education for underprivileged children. Throughout the world, the HSBC Group is financing and sponsoring various initiatives in support of these. The HSBC in the Community Middle East Foundation is a £1 million charity fund that was established in 1996 to support various educational and environmental programmes across the region. Today it forms part of the HSBC Group’s ‘HSBC in the Community’ programme.

On the educational front in Oman, the HSBC in the Community Middle East Foundation donated RO 20,000 to Dar Al Atta, a local charity organisation, towards providing uniforms, school supplies and meals to underprivileged students in local public schools in August this year. HSBC Oman made an additional donation by providing school bags to these students.

In recent years, we have also supported several projects for the Early Intervention Center for Children with Special Needs in Azaiba by directly funding some of its activities or by financially supporting its fund-raising activities.
Another charitable organization which we supported earlier this year was the Association for the Welfare for Handicapped Children in Al Khoud. HSBC contributed RO 3,000 towards setting up a Resource Centre within the branch. The Centre includes IT facilities that will cater for seventy children who attend the Association, and it enable teachers to educate children using the latest technology and software for communication.

In May 2005 we launched the “Star Schools” project, a regional initiative which has been launched in several countries across the Middle East. In Oman, the Project aims at working closely with two secondary government schools; one girls’ school and one boys’ school. The idea is for the Bank to work closely with these schools to help educate children with regards to the value of money, helping them by developing their knowledge regarding the career possibilities in a bank and by financing some external English courses in the UK. We will also be supporting them in providing the necessary hardware and software. Recently, we have enrolled both schools into the Injaz Oman programme. This programme focuses on personal and business economics, entrepreneurship, leadership and community service courses that serves to foster creative thinking and critical problem solving. This fits very well with our aims in raising the efficiency of Oman’s youth to enable them to compete at an international level.

We recently awarded an HSBC Chevening scholarship to Aliya Al Balushi to study for an MBA in Finance at Durham University. She will be joining 27 students selected from across the world to undertake postgraduate degrees in the UK under the HSBC Chevening Scheme in the academic year 2006-07. Aliya is an Assistant Manager, Equity Research at Bank Muscat’s Investment Banking department. During the pre-departure briefing organized by the British Council at the Grand Hyatt, Aliya expressed her delight in being given this opportunity which will enable her to enhance her professional and academic skills.
The HSBC Chevening Scholars programme, part of the UK government-run Chevening Scholarships scheme, has been running since 2000. Through the HSBC Chevening scheme many talented students from around the world are given the opportunity to fulfill their potential. The Scheme allows students who might not otherwise be able to continue their studies to take up a place at a British university. The programme is targeted at graduate students and young professionals who demonstrate the potential to become leaders, decision makers and opinion formers in their own countries. So far, HSBC has supported over 100 talented international students, giving them the opportunity to study at a British university for a year.

We also actively participate in the British Scholarships for Oman (BSO). The BSO was established twenty-one years ago and is supported by a group of Omani and British companies providing assistance to talented Omani Nationals wishing to study in the United Kingdom by financing or partly financing postgraduate courses.

HSBC are an active corporate member of the Environment Society of Oman (ESO) since its inception and was a co-sponsor of their 2006 annual fundraising ball.

We have recently started working on an environmental project in coordination with the ESO. Though the project is still on the drawing board, the bank has committed resources and support to ensure that this important project gains momentum.

In order to build environmental awareness, HSBC has a programme to send staff on various projects organised by Earthwatch. From Oman, staff have studied Dusky Dolphins in New Zealand, Bat Conservation in Malaysia and Whales & Dolphins in Scotland, for example.

What is your role towards Omanisation? How is the job potential for young graduates?

We are over 90% Omanized and are fully subscribed to the recruitment, development and motivation of our Omani talent. We sent four selected executive trainees to the UK in 2005, who had their initial training here in Oman, and we are hoping to send a further batch next year. The trainees spend seven weeks in our training center in the UK, north of London, and there they join trainees from all over the world to learn about HSBC’s global banking strategies and undergo self-development.

We also continue to recruit both graduates and non-graduates into the Bank at various levels offering an exciting career for the right people.

Who are your potential customers? What solutions do you have for them? How can they benefit by utilizing your services?

Our potential customers are a diverse customer base of individuals, businessmen, high networth individuals and middle-sized to large corporates.
We offer a range of solutions to our individual customers ranging from credit cards, personal loans, car loans and home loans to specialized financial solutions for our Status and Premier customers. We plant to offer insurance products, home loans for expatriates and a much wider range of wealth management solutions in the future.

For our corporate customers, we have a very wide range of products and services: HSBC’s corporate banking provides an ever-growing variety of services to all organisations from multinational companies to small local businesses. These services include financing working capital and projects related needs, Account Management, Trade Services, Factoring, Global Payments and Cash Management, Custody and Clearing, Commercial Cards, and Electronic Banking Services. Apart from our team of dedicated relationship managers, customers have the option of interacting with HSBC through diverse channels, tailor made to meet the needs of their individual businesses, including Internet Banking and Phone Banking.

We have introduced a ‘Business Banking Unit’ within our Corporate Banking department to cater for the growing small and medium enterprise segment. The products and services are specially designed and tailored to suit the business needs in the areas of business accounts, payments and transactional management, international and local trade, financing & credit.
With the Real estate sector booming, do you have special loans organized to help local people buy lands.

Housing Loans were offered by commercial banks under non-specific, unsecured personal loans. However, we decided to be more focused by offering a package that caters to the needs of our local customers. We offer general personal loans for customers who need money to get married, buy furniture, educate their children, etc. and but we offer more tailor-made products to suit these customers’ requirements. We are moving more towards a more lifestyle approach to our customer base. Last year, we launched both our Car and Home Loans products which have been very well received by the market. Our Home Loan product also offers financing for land.

Any new products that you have added to entice your customers?

We are currently working on a financial product that caters for students in Oman: Shabab HSBC. The product will help develop and provide financial independence and will be available for college students above the age of 18, including the provision of a credit card.

Anything else you would like to add for the benefit of the readers of Oman Vistas?

HSBC has a long history in Oman. As the British Bank of the Middle East it was the country’s first bank, and for many years was the only bank supporting the development of the Omani economy. The Bank's unique and long standing relationship with Oman dates back to 1948, when it was the only bank in Oman and for most of the Gulf countries at that time. Today HSBC Bank Middle East Ltd is the largest regional bank in the Middle East.

One of HSBC's particular strengths in Oman is Trade Finance, and it is well qualified to provide investment and trading advice to international companies interested in developing their business within the region and elsewhere. Dedicated centres in the North (Bait Al Falaj Main Branch), South (Salalah Branch) and in Batinah (Sohar Branch) provide a comprehensive Trade Finance service. Our Treasury dealing room provides a full range of treasury services, and offers global connections to the HSBC Group's worldwide treasury expertise.
HSBC’s Private Banking service is at the forefront of HSBC's services in the Sultanate and supported by Group Private Banking Centres in Dubai, Jersey, London, Geneva, Luxembourg, Hong Kong and Singapore.

HSBC is the only foreign bank to offer a full custodial service to clients who wish to invest in the Muscat Securities Market.

Our investment bank, with offices in Dubai and London focusing on the Middle East region, is very active in this market with widespread activity in major infrastructure project financing, tourism, privatisations and mergers and acquisitions.

We are unique in providing two Customer Service Units, one in Sarooj and the other in Madinat Al Sultan Qaboos. These units serve customers from 9 am to 9 pm. Our ATMs in Oman and around the world also provide essential services to our customers whether they are in Oman or traveling overseas.

Being committed to support the development of the country for the past 58 years and in the future we truly believe HSBC is ‘the world’s local bank’ in Oman