Loan impairment costs hurt HSBC Oman in H1| MENAFN.COM

Friday, 12 August 2022 09:11 GMT

Loan impairment costs hurt HSBC Oman in H1


(MENAFN- Muscat Daily) HSBC Bank Oman has reported an 8.8 per cent decline in net profit for the six-month period ended June 30 2015. 

Net earnings decreased to RO5.2mn during the first half of this year from RO5.7mn in the corresponding period of 2014 according to preliminary numbers submitted to the Muscat Securities Market on Wednesday.

The bank's loan book grew by 15.7 per cent to RO1.31bn as of June 30 2015 against RO1.13bn a year ago. Customer deposits marginally decreased 0.8 per cent to RO1.94bn from RO1.96bn.

HSBC Bank Oman reported a 5.9 per cent rise in operating income which came in at RO36.1mn compared with RO34.1mn in the corresponding six months of last year. Operating expenses rose 4.5 per cent to RO27.7mn.

The bank said its loan impairment charges (net of recoveries) jumped 83.3 per cent to RO2.2mn during the first half of 2015 against RO1.2mn in the same period last year.

HSBC Bank Oman reported a marginal decrease of 1.2 per cent in total assets to RO2.35bn from RO2.38bn a year earlier.

Second quarter net profit fell 45 per cent year-on-year to RO1.42mn.

A Gulf Baader Capital Markets (GBCM) note said the bank's overall second-quarter performance was below its estimates.

GBCM said that during the second quarter this year the bank witnessed a credit addition of RO88.65mn as against RO64.73mn in the first quarter of 2015 and RO119.46mn in the second quarter of 2014. Deposits from customers remained flat on a year-on-year basis.


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