VANCOUVER — HSBC Bank Canada says it had a reduction in its fourth quarter and its 12-month profit was about one-third under in 2014, largely because of increased provisions for purchasers within the energy sector.
The bank’s profit was $414 million for the 12 months ended Dec. 31, including a $38 million reduction in your fourth quarter.
That’s down from the 2014 annual profit of $613 million, including an $118 million profit within the final 3 months.
HSBC says it felt the negative impact of depressed commodity prices, particularly oil, within the second half of 2015.
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Its loan impairment charges along with other credit risk provisions were $234 million, up $127 million from 2014, mostly because of the adverse conditions for its energy sector customers.
At the same time frame, the bank’s operating expenses were up $84 million or 7.6 percent to $1.12 billion, because of HSBC’s investments in systems for detecting and deterring financial crime as well as adjusting to customers’ changing habits.
“Additionally, expenses have also been adversely influenced by the result of the lower Canadian dollar on expenses denominated in foreign currency,” HSBC Bank Canada said.
The bank is a subsidiary of HSBC Holdings PLC, a worldwide bank headquartered working in london.
The Canadian Press
