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HSBC Bank Canada 2005 Interim Results
20 July 2005
- Net income attributable to common shares was C$212 million for the half-year ended 30 June 2005, an increase of 19.8 per cent over the same period in 2004.
- Net income attributable to common shares was C$104 million for the quarter ended 30 June 2005, an increase of 19.5 per cent over the quarter ended 30 June 2004.
- Return on average common equity was 20.3 per cent for the half-year ended 30 June 2005 and 19.7 per cent for the quarter ended 30 June 2005 compared with 20.5 per cent and 19.7 per cent respectively for the same periods in 2004.
- The cost:income ratio was 53.8 per cent for the half-year ended 30 June 2005 and 54.6 per cent for the quarter ended 30 June 2005 compared with 55.0 per cent and 54.1 per cent respectively for the same periods in 2004.
- Total assets were C$47.4 billion at 30 June 2005 compared with C$40.8 billion at 30 June 2004.
- Total funds under management were C$18.8 billion at 30 June 2005 compared with C$15.8 billion at 30 June 2004.
Overview
HSBC Bank Canada recorded net income attributable to common shares of C$212 million for the half-year ended 30 June 2005, an increase of C$35 million, or 19.8 per cent compared to the same period in 2004. Net income attributable to common shares for the quarter ended 30 June 2005 was C$104 million, an increase of C$17 million, or 19.5 per cent compared to the same period in 2004.
Net income for the half-year ended 30 June 2005 benefited from higher net interest income due to growth in the balance sheet, growth in non-interest income and a strong credit environment resulting in a significant reduction in the provision for credit losses compared to the same period in the previous year.
The half-year ended 30 June 2005 included income of C$5 million before tax arising from the adoption of a new accounting standard for valuation of investment company assets. The first half of 2004 benefited from a C$4 million gain on sale of a subsidiary included in discontinued operations and income of C$9 million relating to a change in accounting for mortgage loan prepayment fees, both items on a net of tax basis.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: "Results for 2005 continue to be good. Our business initiatives and the strong economy have contributed to our growth. Our robust risk management process, together with the impact of the good economy and the low interest rate environment, have also resulted in record low provisions for credit losses.
"Our focus will be to continue to build on the excellent relationships with our customers by continuing to improve convenience and service. For example, all our customers now have the convenience of surcharge-free access to the third largest ATM network in Canada through our agreements with the Exchange Network and Bank of Montreal."
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