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HSBC Bank Canada second quarter 2006 results - highlights
24 July 2006
These results are prepared in accordance with Canadian generally accepted accounting principles.
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Net income attributable to common shares was C$115 million for the quarter ended 30 June 2006, an increase of 10.6 per cent over the quarter ended 30 June 2005.
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Net income attributable to common shares was C$231 million for the half-year ended 30 June 2006, an increase of 9.0 per cent over the same period in 2005
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Return on average common equity was 19.9 per cent for the quarter ended 30 June 2006 and 20.3 per cent for the half-year ended 30 June 2006 compared with 19.7 per cent and 20.3 per cent respectively for the same periods in 2005.
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The cost efficiency ratio was 52.6 per cent for the quarter ended 30 June 2006 and 52.8 per cent for the half-year ended 30 June 2006 compared with 54.6 per cent and 53.8 per cent respectively for the same periods in 2005.
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Total assets were C$53.1 billion at 30 June 2006 compared with C$47.4 billion at 30 June 2005.
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Total funds under management were C$21.7 billion at 30 June 2006 compared with C$18.8 billion at 30 June 2005.
Overview
HSBC Bank Canada recorded net income attributable to common shares of C$115 million for the quarter ended 30 June 2006, an increase of C$11 million, or 10.6 per cent, from C$104 million for the same period in 2005. This increase was due to strong growth in net interest income and non-interest revenue. Net income in the quarter was impacted by a few significant items within non-interest expenses and income tax expense, which held back reported growth in net income, as highlighted in the following commentary. Partially offsetting these items was an increase in the fair value of our investments in private equity funds.
Net income attributable to common shares for the first half of 2006 was C$231 million compared with C$212 million for the same period in 2005, an increase of C$19 million, or 9.0 per cent.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: "Our results for the second quarter continue to show good momentum. Underlying revenue growth for the quarter and half-year continues to be strong.
"We are well positioned to invest in areas of growth while continuing to improve our operating efficiency. We will also leverage the success of new products, like the High Rate Savings Account, and enhanced services, such as those created by the Payments and Cash Management business, to help acquire new customers and deepen relationships with our existing customers
"As we celebrate the 25th anniversary of HSBC Bank Canada, I would like to take this opportunity to thank our customers and our colleagues at HSBC. They have helped us achieve this milestone. Canada is one of the greatest countries in the world, full of promise and opportunity, and one of the best examples of how people from diverse backgrounds and perspectives can build something special. It has been a great quarter century and we look forward to great things to come in the next 25 years and beyond!"
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