HSBC Oman net profit drops 25% to RO9.5mn

(MENAFN- Muscat Daily) HSBC Bank Oman has posted a 25.2 per cent decline in net profit for the nine-month period ended September 30 2014. Net profit fell to RO9.5mn from RO12.7mn in the corresponding period of 2013 according to a filing of preliminary results.

Operating income of the bank increased 2.1 per cent to RO53mn from RO51.9mn in the same period last year. Its loan book grew by 12 per cent to RO1.14bn as of September 30 2014 against RO1.01bn a year ago. However customer deposits witnessed a decline of 6.6 per cent to RO1.8bn from RO1.92bn a year ago.

Gulf Baader Capital Markets in a note said HSBC Bank Oman's third-quarter 2014 net profit came in at RO3.8mn an increase of 10.5 per cent year-on-year. 'This is still above our estimates of RO2.7mn. Revenue growth is improving and better operating performance in third quarter lead to higher than estimated profits.'

The bank's loan impairment charges stood at RO2.6mn while third-quarter impairment charges were RO1.4mn GBCM said adding 'We remain neutral on valuations need to strategise their growth plans which would be critical to the re-rating of the stock in the coming quarters.'