HSBC’s Oman Unit Posts 46% Q1 Profit Slump

HSBC Bank Oman, an affiliate of HSBC Holdings, posted a 46 percent slump in net profit in the first quarter, as the lender didn’t repeat gains registered in the same period last year.

Oman’s fourth-largest lender by assets made a net profit of 3.1 million rials ($8.1 million) in the opening three months of 2014, compared to 5.7 million rials in the same period of 2013, according to a bourse filing on Monday.

HSBC Bank Oman said the fall was because the corresponding quarter in 2013 had been boosted by “large recoveries, release of a portion of the general provision and earnings from one-off fees”.

Estimates from Gulf Baader Capital Markets and United Securities had forecast a net profit for the period of 2.27 million and 3.58 million rials respectively.

HSBC Bank Oman said earlier this month that it had agreed to sell its Indian business to Qatar’s Doha Bank for an undisclosed amount, with the transaction set to close in the second quarter.

The bank named Andrew Long as its new chief executive on April 1, replacing Ewan Stirling, who left in February for a London-based role at HSBC.