HSBC Bank Canada reports quarterly loss as oil collapse hits energy sector customers

VANCOUVER — HSBC Bank Canada says it had a loss in its fourth quarter and it is 12-month profit was about one-third less than in 2014, mainly due to increased provisions for purchasers within the energy sector.

The bank’s profit was $414 million for the Twelve 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 in the final 3 months.

HSBC says it felt the negative impact of depressed commodity prices, particularly oil, within the other 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, primarily due to 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 per cent to $1.12 billion, due to HSBC’s investments in systems for detecting and deterring financial crime in addition to adapting to customers’ changing habits.

“Additionally, expenses are also adversely influenced by the result of the lower Canadian dollar on expenses denominated in foreign currency,” HSBC Bank Canada said.

The bank is really a subsidiary of HSBC Holdings PLC, a worldwide bank headquartered working in london.

The Canadian Press