Transcription
Oman Arab Bank SAOGCONDENSED INTERIM FINANCIAL STATEMENTS30 JUNE 2020 (UNAUDITED)
Oman Arab Bank SAOGINTERIM CONDENSED FINANCIAL STATEMENTSAS AT 30 JUNE 2020 (UNAUDITED)CONTENTSPAGESCONDENSED INTERIM STATEMENT OF FINANCIALPOSITION1CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME2CONDENSED INTERIM STATEMENT OF CHANGES INEQUITY3CONDENSED INTERIM STATEMENT OF CASH FLOWS4NOTES TO THE CONDENSED INTERIM FINANCIALSTATEMENTS5 – 25
Oman Arab Bank SAOGCONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2020 (UNAUDITED)Consolidated30-Jun-20RO 000OAB SAOC30-Jun-19RO 000OAB SAOCAudited31-Dec-19RO ,497,129597,404780,456720,029NoteAssetsCash and balances with Central Bankof OmanDue from banksLoans, advances and financingactivities for customersInvestments in securitiesProperty and equipmentOther assetsTotal assetsLiabilitiesDue to banksCustomers’ depositsOther liabilitiesSubordinated debtTaxationTotal liabilitiesEquityShare capitalShare premiumLegal reserveGeneral reserveImpairment reserveOther non-distributable reservesRetained earningsCumulative changes in fair value ofinvestmentsTotal equity attributable to theequity holders of the Bank15 (a)15 (b)1617Tier 1 perpetual bondTotal equityTotal liabilities and shareholders’funds18Contingent liabilities24The financial statements were approved by the board of directors 20 July 2020 and were signed ontheir behalf by:Rashad Muhammad Al ZubairChairmanRashad Al-MusafirChief Executive OfficerThe notes 1 to 28 form part of these condensed interim financial statements
Oman Arab Bank SAOGCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED 30 JUNE 2020 (UNAUDITED)NotesInterest incomeInterest expenseNet interest incomeSix months endedOABSAOCConsolidated30-Jun30-Jun20192020RO'000 RO'000Three months endedOABSAOCConsolidated30-Jun30-Jun20192020RO'000 Profit before tax12,54917,5315,5408,908TaxationNet profit for the 4,6127,4390.0050.0090.0090.0181920Income from Islamic financingNet interest income and income fromIslamic financingOther operating income21Operating incomeStaff costsOther operating expensesDepreciationOperating expensesProfit from operations before impairmentlosses and taxImpairment on financial assetsRecoveries and releases from provision forcredit losses(Impairment on) / release from due frombanks and investmentsTotal impairment losses (net)7Other comprehensive incomeItems that will not be reclassified to profit orlossEquity investments at FVOCI – net change infair valueOther comprehensive (loss) / income forthe periodTotal comprehensive income for theperiodBasic and diluted earnings per share:- for the period (RO)- annualised (RO)25The notes 1 to 28 form part of these condensed interim financial statements
Oman Arab Bank SAOGCONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYAS AT 30 JUNE 2020 (UNAUDITED)RetainedearningsCumulativechanges infair value ofinvestmentsTier veOther nondistributablereservesRO '000-RO '00041,490-RO '00025,560-RO '000-RO '00015,915-RO '00068,797(14,808)14,745(668)RO '000(2,059)237-RO '00072,553-RO ,779(2,088)72,553(2,758)361,215Acquisition adjusments32,32136,565---600---69,486Balance at 779(2,088)72,553430,701Balance at 1-Jan-2019Dividends paidProfit for the periodUnrealised gain on FVOCIRealised loss on FVOCIInterest distribution of Perpetual Tier 1 capitalbondsBalance at 30-Jun-2019Balance at 1-Jan-2020Dividends paidProfit for the periodUnrealised loss on FVOCIRealised loss on FVOCIInterest distribution of Perpetual Tier 1capital bondsBalance at 30-Jun-2020 (pre-merger)*Transfers to legal reserve, impairment reserve and subordinated debt reserve (included under ‘’other non-distributable reserve’’) are undertaken on an annual basis.The notes 1 to 28 form part of these condensed interim financial statements
Oman Arab Bank SAOGCONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE PERIOD ENDED 30 JUNE 2020 (UNAUDITED)NotesProfit before taxAdjustments for:DepreciationAllowance for credit lossesRecoveries / releases from allowance for credit lossesInterest on subordinated debtForeign exchange revaluationImpairment on investmentsNet impairment on due from banksDividend IncomeLoss on sale of fixed assetsInterest income on investments at amortised costChanges in fair value of investments at fair value through profit or lossOperating profit before changes in operating assets and liabilitiesNet changes in:Loans, advances and other financing activities for customersFinancial assets at fair value through profit or lossDue from banksOther assetsCustomers’ deposits and unrestricted investment accountsOther liabilitiesCash from / (used in) operating activitiesTax paidNet cash from / (used in) operating activitiesInvesting activitiesPurchase of investment at amortized costProceeds from sale of investmentsPurchase of property & equipmentDisposal of premises and equipmentInterest income on investments at amortized costDividend IncomeNet cash used in investing activities10Financing activitiesPayment of dividendInterest on Tier 1 perpetual bondInterest paid on subordinated bondsNet cash used in financing activitiesDecrease in cash and cash equivalentsCash and cash equivalents at beginning of periodCash and cash equivalents at end of period (OAB SAOC)Adjustment on acquisitionCash and cash equivalents at end of period (Consolidated)Representing:Cash and balances with Central BankDue from banks ( maturing within 3 months)Due to banks ( maturing within 3 months)Cash and cash equivalents at end of period (OAB SAOC)Adjustment on acquisitionCash and cash equivalents at end of period (Consolidated)The notes 1 to 28 form part of these condensed interim financial statementsOABConsolidatedSAOCSix months ended 30 319(96,936)160,386160,386
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE THREE MONTHS ENDED 30 JUNE 2020 (UNAUDITED)1Legal status and principal activitiesOman Arab Bank SAOG (the Bank) was incorporated in the Sultanate of Oman on 1 October 1984 as aclosed joint stock SAOC company. It is principally engaged in commercial and investment banking activitiesthrough a network of branches in the Sultanate of Oman. The registered head office of the bank is North AlGhoubra, P. O. Box 2240, Al-Udhayabah, Postal Code 130, Muscat, and Sultanate of Oman. For the periodfrom 1984 to 29 June 2020, the Bank was a subsidiary of Oman International Development and InvestmentCompany SAOG.The bank employed 1,220 staff as at 30 June 2020 (30 June 2019: 1,215, 31 December 2019: 1,240)2Basis of preparationThe condensed interim financial statements of the Bank are prepared in accordance with InternationalAccounting Standard 34, Interim Financial Reporting. In addition, results of the three months period ended30 June 2020 are not necessarily indicative of the results that may be expected for the financial year ending31 December 2020.The accounting policies adopted in the preparation of the condensed interim financial statements areconsistent with those followed in the preparation of Bank’s annual financial statements for the year ended31 December 2019, except the consolidation of Alizz Islamic Bank as at 30 June 2020. The condensedinterim financial statements do not contain all information and disclosures required for full financialstatements prepared in accordance with International Financial Reporting Standards.The condensed interim financial statements are prepared in Rial Omani, rounded to the nearest thousands,except as indicated. The functional currency of the Bank is Rial Omani.The condensed interim financial statements are prepared under the historical cost convention, modified toinclude measurement of derivative financial instruments and equity investments either through profit andloss account or through other comprehensive Income, at fair value.The Bank presents its condensed interim financial statement of financial position in descending order ofliquidity, as this presentation is more appropriate to the Bank’s operations.3Acquisition of Alizz Islamic Bank SAOGOn 30 June 2020, the Bank acquired 99.98 percent of the shares and voting interests in Alizz Islamic BankSAOG. As a result, the Bank obtained full control over Alizz Islamic Bank SAOG, which made it a whollyowned subsidiary. Alizz Islamic Bank was previously listed on the Muscat Securities Market (MSM) andupon acquisition by Oman Arab Bank, the shares of Alizz Islamic Bank were delisted. Subsequently theseshares were exchanged for the shares in the Oman Arab Bank. The exchange of shares were based onthe agreed ratio of 81:19.On 6 July 2020, Oman Arab Bank SAOG became a listed Bank. Consequently, the ordinary equity sharesof the Oman Arab Bank SAOG were listed on Muscat Securities Market (MSM).a. Consideration transferredRO’000Net assets of Alizz Islamic Bank SAOG acquired as on 30-Jun-2020 (first date ofconsolidation) – (refer sub-point d)Consideration paid including share premiumReserve movement69,48668,886600
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)3Acquisition of Alizz Islamic Bank SAOG (continued)b. Consideration transferred (continued)Units323,210,000323,210,000Shares IssuedShare PremiumUnit Price0.1000.113RO' 00032,32136,56568,886c. Acquisition-related costsThe Bank has so far incurred acquisition-related costs of RO 733,192 relating to external legal fees anddue diligence costs.d. Identifiable assets acquired and liabilities assumedThe following table summarises the recognised amounts of assets acquired and liabilities assumed at thedate of acquisition.AssetsCash and balances with the Central Bank of OmanDue from banksLoans & advances and financing to customersInvestment securitiesProperty and equipmentOther assetsTotal 65,742Due to banksDeposits from customersOther liabilitiesLiabilitiesEquity of unrestricted investment account holdersTotal liabilitiesNet arativesAs at 30 June 2020, post acquisition of Alizz Islamic Bank, the Bank has consolidated the assets and hasrecognised the liabilities for group reporting. The details mentioned under earlier comparative periods arestandalone as the combining entities were not under the common control at those respective dates.5Cash and balances with Central Bank of OmanCash in handClearing account with Central Bank ofOmanOther balances with Central Bank of OmanCapital deposit with Central Bank of AB SAOCUnaudited30-Jun-19RO’00043,901OAB 64
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)5Cash and balances with Central Bank of Oman (continued)* The capital deposit cannot be withdrawn without the approval of the Central Bank of Oman. Thecapital deposit earns an annual interest at 1.5 per cent as at 30 June 2020 (30 June 2019: 1.5per cent, 31 December 2019: 1.5 per cent).6Due from banksPlacementsCurrent accountsLess: allowance for the credit 26,43370,058(212)69,846OAB 27)75,319OAB )50,802The movements in the allowance for credit losses on due from banks were as follows:Opening balance of the periodAcquisition adjustmentProvided during the periodBalance at the end of the period7ConsolidatedUnaudited30-Jun-20RO’000OAB SAOCUnaudited30-Jun-19RO’000OAB 427538(184)354OAB 9443,8862,016,896(62,179)1,954,717OAB 14,0162,059,890(53,560)2,006,330Loans, advances and financing activities for customersCommercial loansOverdraftsPersonal loansOther loansLess: allowance for credit 527146,8211,032,8713,5102,672,729(85,762)2,586,967
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)7Loans, advances and financing activities for customers (continued)Allowance for credit lossesIncluded in above the loans related to Alizz Islamic Bank of RO 584,079 thousand andcorresponding provisions of RO 21,004 thousand.The movements in the provision for loan impairment and reserved interest were as follows:30 June 2020 (Consolidated)ContractualAllowance forinterest notcredit lossesrecognisedRO 000RO 000Balance at beginning of periodAcquisition adjustmentProvided during the periodAmounts written off during the periodAmounts released / recovered duringthe periodBalance at end of 5,76230 June 2019 (OAB SAOC)ContractualAllowance forinterest notcredit lossesrecognisedRO 000RO 000Balance at beginning of periodProvided during the periodAmounts written off during the periodAmounts released/recovered duringthe yearBalance at end of periodTotalRO 000TotalRO 900)52,796(462)9,383(4,362)62,17931 December 2019 (OAB SAOC) AuditedContractualAllowance forinterest notcredit lossesrecognisedTotalRO 000RO 000RO 000Balance at 1 January 2019Provided during the yearAmounts written off during the yearAmounts released/recovered duringthe yearBalance at end of 87(12,529)(5,520)47,153(2,797)6,407(8,317)53,560As part of the acquisition of Alizz Islamic Bank SAOG, the consolidated financial statementsinclude an ECL provisions of RO 21,004,000, which has been recognised at the time ofacquisition, along with the “contractual interest not recognised” for RO 1,295,000.
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)7Loans, advances and financing activities for customers (continued)Allowance for credit losses (continued)Total allowance for the expected credit loss on the consolidated performing loans as at 30 June2020 is RO 35,187,485 (30 June 2019: RO 28,371,661, 31 December 2019: 23,018,278). TheCentral Bank of Oman regulation requires that the allowance for credit losses should be inaccordance with IFRS 9 and if the provision requirement in accordance with the Central Bankof Oman guidelines is higher than IFRS 9, the difference net of tax needs to be transferred tothe “Impairment Reserve” as an appropriation from net profit after tax. Transfer to / from thisreserve is undertaken at each year end.As at 30 June 2020, the consolidated gross non-performing loans amounts to RO 97,932,000(30 June 2019: RO 71,188,773; 31 December 2019: 73,933,879).
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE THREE MONTHS ENDED 30 JUNE 2020 (UNAUDITED)7Loans, advances and financing activities for customers (continued)7 a) Movement in Expected credit losses (ECL)Stage 1RO 000Stage 2RO 000Stage 3RO 000TotalRO 243547,91215,10724,48935447,508Net transfer between stages- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other e for the year (net)- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other 1)5834,8662,173(141)7,622Acquisition related adjustments- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other 111,7174,92013,182119,819Closing balance as at 30 June 2020 (consolidated)- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other 41,26721410,29224,71739,94121474,950Exposure subject to ECL (consolidated)- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other FinancialAssetsOpening balance as at 1 January 2020 (OAB SAOC)- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other FinancialAssets
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)7Loans, advances and financing activities for customers (continued)7 a) Movement in Expected credit losses (ECL) (continued)30 June 2019 (OAB SAOC)Exposure subject to ECL- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other Financial AssetsOpening Balance - as at 1 January 2019- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other Financial AssetsNet transfer between stages- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other Financial AssetsCharge for the Period (net)- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other Financial AssetsClosing Balance - as at 30 June 2019- Loans and Advances to Customers- Investment Securities (Debt)- Loan Commitments and Financial Guarantees- Due from Banks, Central Banks and Other Financial AssetsStage 1RO 000Stage 2RO 000Stage 3RO 000TotalRO 28119,19424,42424,42452,3004749642753,2707 b) Impairment charge and provisions heldRO 000Impairment loss charged to profit and loss accountProvisions required as per CBO norms/held as perIFRS 9Gross NPL ratioNet NPL ratioAs per CBONorms(9,237)As perIFRS (1,818)The Central Bank of Oman regulation requires that the allowance for credit loss loan should be inaccordance with IFRS 9 and if the provision requirement in accordance with the Central Bank ofOman guidelines is higher than IFRS 9, the difference net of tax needs to be transferred to the“Impairment Reserve” as an appropriation from net profit after tax. As at 30 June 2020, the balanceunder impairment reserve is RO 9,130 thousand, which is adequate to cover the above reserverequirement.
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)8Investment securitiesConsolidatedUnauditedCarrying value30-Jun-20OAB SAOCUnauditedCarrying value30-Jun-19OAB SAOCAuditedCarrying 7246131131698953,5105931697623,501Government Development BondsOman Treasury BillsGovernment SukukCorporate BondsTotal amortised 142,854143,9943,17210,836158,002Total financial investments225,707150,307165,422Fair value through profit andloss(FVTPL)Quoted investments- OmanBanking and investment sectorQuoted investments- ForeignBanking and investment sectorTotal FVTPLInvestment measured at FVOCIQuoted investments- OmanBanking and investment sectorManufacturing sectorService sectorQuoted investments- ForeignBanking and investment sectorService sectorUnquoted investmentsBanking and investment sectorManufacturing sectorService sectorTotal FVOCIInvestment measured at amortisedcostQuoted investments- Oman
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)8Investment securities (continued)Details of significant investmentsDetails of investments exceeding 10 per cent of the carrying value of the bank’s investment are asfollows:Bank’s portfolio%Carrying valueRO’00071%18%159,99841,127OAB SAOC30 June 2019 (Unaudited)Government Development Bonds87%130,526OAB SAOC31 December 2019 (audited)Government Development Bonds89%143,994Consolidated30 June 2020 (Unaudited)Government Development BondsGovernment sukuks9Other assetsInterest and commission receivableAcceptancesPrepaymentsCredit card settelmentPositive Fair Value change - 20RO’00040,77324,1804,569360OAB 53OAB 1,0809,77880,7407042,91851,3742264,06255,186
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)10Property and equipmentCostAt 1 January ntAt 30 June 2020DepreciationAt 1 January 2020Charge for theperiodDisposalsAcquisitionadjustmentAt 30 June 2020Net book valueAt 30 June 2020(Unaudited)At 30 June 2019(Unaudited)At 31 December2019 (audited)Land torVehiclesCapitalWIPRightof-useassetsRO 000RO 000RO 000RO 000RO 000RO ring the six months ended 30 June 2020, the Bank acquired assets with a cost of RO 10,880thousand. This amount excludes any capitalised borrowing cost.11Due to banksCurrent accountsMoney at call and short term depositsRepurchase 11,28634,20345,489OAB 936OAB 99,0912,580,666OAB 51,937,274OAB ,998,436Customers’ depositsDemand and call accountsTerm depositsSavings accounts
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)13Other liabilitiesInterest PayableLiabilities under acceptancesAccrued expenses and othersAcceptances and certified chequesInterest and commission received inadvanceStaff related provisionsCredit card settlementNegative Fair Value change - ForwardcontractsLease 3,08024,18017,0172,218OAB 91OAB 38410,33667,7311967,03971,698Subordinated debtIn order to enhance the capital adequacy and to meet the funding requirements, the Bank has raisedcapital in the form of subordinated loans.Opening and 020,000OAB SAOCUnaudited30-Jun-19RO’00020,00020,000OAB SAOCAudited31-Dec-19RO’00020,00020,000The Bank obtained subordinated loans of RO 20 Million, which comply with Basel III requirementsfor tier-2 capital, for a tenor of five years and six months in November 2015. The loans carry a fixedrate of 5.5 per cent per annum, payable semi-annually with the principal payable on maturity.15 (a) Share capitalThe authorized capital of the Bank is RO 200,000,000. Before acquisition of Alizz Islamic BankSAOG, the Bank has issued, subscribed and fully paid 1,346,200,000 equity share of 100 baisaeach. On 30 June 2020, the Bank issued additional 323,210,000 equity shares to the shareholdersof Alizz Islamic Bank as a consideration for acquisition of 99.98 per cent control. Subsequently, theissued, subscribed and fully paid up share capital is comprising of 1,669,410,000 equity shares of100 baisa each (2019: 1,346,200,000).Number of shares of 100 Baiza each issued to shareholders of Alizz Bank SAOGNumber of shares of 100 Baiza each pre-merger of Oman Arab Bank SAOCTotal number of shares post merger of Oman Arab Bank SAOG of 100 BaizaeachArab Bank PlcOman International Development & InvestmentCo. SAOGVarious parties, including lding %49.00%Shares818,010,900RO %323,210,0001,669,410,00032,321.00166,941.00
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)15 (b) Share premiumOn 30 June 2020, the Bank acquired net assets worth of RO 69,486 thousand (refer note 3 and15). The consideration for this acquisition was partially through issuance of 32,321,000 equityshares of 100 baisa each and the balance through share premium. Below is the quick summary ofthe reported share premium in the statement of financial position and statement of changes inequity:RO'00069,48632,32160036,565Net assets acquired as 30 June 2020 - AIssuance of equity shares (32,321,000 shares of 100 baisa each) - BReserve movement - CShare premium (A – B - C)16 Legal reserveArticle 132 of the Commercial Companies Law requires that company shall in each financial year,set aside 10 per cent of the net profits, after deduction of taxes, for establishing a legal reserve untilsuch legal reserve amounts to at least one third of the company’s share capital. Such legal reservemay be used for covering the company’s losses and the increase of its share capital by way of issuingshares and it shall not be distributed to the shareholders as dividends except where the companyreduces its share capital, provided that the legal reserve shall not be less than one third of the sharecapital after the reduction.17 Other non-distributable reservesAt 1 January 2020Acquisition adjusmentsAt 30 June 2020At 30 June 2019At 31 December 2019 (audited)Subordinateddebt 20,51515,91519,915a) The subordinated debt reserve has been created by a transfer of 20 per cent of the subordinatedloans of the profit before tax for the year. The Central Bank requires a reserve to be set asideannually for the subordinated loans which are due to mature within five years. The reserve isavailable for transfer back to retained earnings upon maturity of the subordinated loans.b) During 2015 the Bank sold its old head office premises at Ruwi. Following its move to the newpremises at Al Ghoubra, the profit on sale of the premises of RO 2.4 million has been set asideas a special reserve, which requires prior approval of the Central Bank of Oman for anydistribution.The Central Bank of Oman via circular BSD/CB/FLC/2018/15 dispensed with the specificprovision / special reserve requirements of 15 per cent applicable to restructured accounts otherthan non-performing loans. The circular further states that the existing balance of Banks-FLCs/447andBSD/2017/BKUP/Banks-FLCs/467, would continue until such loans are upgraded. Accordingly,the existing amount of RO 1.5 million (June 2019: RO 1.5 million) is included in the specialreserve.
Oman Arab Bank SAOGNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE SIX MONTHS ENDED 30 JUNE 2020 (UNAUDITED)18 Tier 1 Perpetual BondsOn 29 December 2016, the Bank issued unsecured perpetual Tier 1 bonds of RO 30 million
On 6 July 2020, Oman Arab Bank SAOG became a listed Bank. Consequently, the ordinary equity shares of the Oman Arab Bank SAOG were listed on Muscat Securities Market (MSM). a. Consideration transferred RO'000 Net assets of Alizz Islamic Bank SAOG acquired as on 30-Jun-2020 (first date of consolidation) - (refer sub-point d) 69,486
