x Abu Dhabi, UAEFriday 28 July 2017

Profit at HSBC's Oman unit slumps 62.7 per cent in 2012

HSBC Bank Oman, formed last year by a merger of HSBC's Oman unit and Oman International Bank, posted a 62.7 per cent slump in 2012 net profit, the bank said in a statement on Wednesday.

HSBC Bank Oman, formed last year by a merger of HSBC's Oman unit and Oman International Bank, posted a 62.7 per cent slump in 2012 net profit, the bank said in a statement on Wednesday, hurt by integration costs and bad loans.

The lender, Oman's second-largest by market capitalisation, made a net profit of 5.8 million rials in 2012, compared with 15.5m rials in 2011, the bourse filing from the bank said.

In the fourth quarter, HSBC Bank Oman made a net loss of 4.77m rials, according on Reuters calculations based on the company's nine-month net profit of 10.57m rials.

Non-performing loans as a per centage of total loans jumped to 7.1 per cent at the end of 2012, compared with 1.2 per cent at the end of the previous year, the statement said.

Operating expenses rose to 48.7m rials, which included 13.9m rials of integration costs, the bank said without detailing how much the increase was.

The formal completion of the merger was announced at the beginning of June, with HSBC holding 51 per cent of the new entity. Previously, OIB was Oman's fifth-largest bank, with the second-largest branch network in the country and gross assets of US$3.2 billion.

The board of directors proposed a cash dividend of 0.001 rials per share, the statement added.

In October, one of Oman's richest businessmen increased his shareholding in the bank to 25 per cent from 18.39 per cent.

 

* Reuters