The world's local bank
HSBC Bank Canada - Q1 2004 Results
26 April 2003
- Net income was C$92 million for the quarter ended 31 March 2004, an increase of 26.0 per cent from C$73 million in the same period of 2003.
-
Return on average common equity was 21.3 per cent for the quarter ended 31 March 2004 compared with 19.0 per cent for the same period in 2003.
- The cost:income ratio was 56.0 per cent for the quarter ended 31 March 2004 compared with 54.9 per cent for the quarter ended 31 March 2003.
- Total assets were C$38.6 billion at 31 March 2004 compared with C$35.4 billion at 31 March 2003.
-
Total funds under management of C$15.8 billion at 31 March 2004 compared with C$11.5 billion at 31 March 2003.
HSBC Bank Canada recorded net income of C$92 million for the quarter ended 31 March 2004, an increase of C$19 million, or 26.0 per cent, from C$73 million for the first quarter of 2003. Net income for the first quarter of 2004 benefited from a one-time change following the adoption of the Canadian Institute of Chartered Accountants new accounting requirements in accounting for mortgage loan prepayment fees that increased income before taxes by C$14 million. Excluding this increase, net income was C$83 million, 13.7 per cent higher when compared with the first quarter of 2003.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: “Results for the quarter were good. We are pleased with the solid growth in consumer and commercial loans. However, low interest rates and the competitive environment in residential mortgages and personal deposits have impacted our net interest margins. The improvement in equity markets and our ongoing investments in the wealth management businesses have resulted in strong growth in funds under management and in higher retail brokerage commissions. Credit losses were lower for the quarter compared with the same period in 2003, which was reflective of the improving credit environment. This was partially related to the low interest rate environment and recovering economy in Canada and in the United States.
“Our focus for 2004 is to continue the excellent service that we provide to our customers and to grow our various core lines of businesses. This means we must be focused on allocating our resources to those businesses that offer the greatest opportunities for growth while continuing our strong expense discipline and risk management.
“We are excited to welcome Intesa Bank Canada customers and the opportunity to provide them with the expanded range of products and services that HSBC offers. The acquisition of Intesa Bank Canada, expected to close in the second quarter of 2004 subject to regulatory approval, will enable us to increase core business operations in central Canada and strengthen our position as a leading alternative to the big domestic banks.”
Download the full text of the release from the link on the right.
Increase font
Decrease font