(MENAFN- Muscat Daily) HSBC Bank Oman announced on Monday that its net profit was down by 45.6 per cent to RO3.1mn in the three-month period ended March 31, 2014, compared with RO5.7mn for the same period of 2013. The bank said its net profit in the first quarter of 2013 had benefited from large recoveries, the release of a portion of the general provision, and earnings from one-off fees.
HSBC Bank Oman's net interest income was flat for the first quarter of 2014 at RO11.5mn compared with the same period of the previous year. The bank's total other operating income declined by 6.1 per cent to RO4.6mn, compared with RO4.9mn for the same period in 2013, due to one-off fees received last year.
In a press release, David Eldon, chairman of HSBC Bank Oman, said, ''At our annual general meeting (AGM) in March, we talked about how we had been spending a lot of time and effort putting in place stronger foundations for the future and that we remain focused on building the leading bank in Oman, by delivering the best customer experience.
''We will achieve this through a clear strategy of growing revenues, streamlining processes and procedures, and implementing the highest global standards to protect the bank, our shareholders and our customers against the growing risks of financial crime,'' said Eldon.
The bank's loans and advances, net of provisions and reserved interest, decreased by 4.5 per cent to RO1.02bn, due to the sale of the syndicated loan book and repayment of loans (compared with RO1.06bn as of March 31, 2013). Customer deposits decreased by 7.9 per cent to RO1.95bn due to a reduction in corporate deposits (compared with RO2.11bn as of March 31, 2013).
Eldon said, ''Clearly, the period between our AGM and announcing our first quarter results does not give time to evidence an improvement in performance although we remain encouraged by early signs of improved activity.''
''This is particularly noticeable in our retail banking and wealth management business, where in January, we introduced a new, more customer-centric way of serving retail banking customers. This reflects our strategy to treat customers openly and fairly, encouraging staff to better understand customers' financial needs and tailoring the bank's services to meet these needs,'' said Eldon.
Operating expenses remained flat at RO12.3mn, in line with the first quarter of 2013. The bank said its capital adequacy ratio increased to 19.8 per cent as of March 31, 2014, compared with 17.6 per cent a year ago, representing a strong capital base for future growt
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