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HSBC Bank Canada 2001 results - highlights
12 February 2002
- Net income attributable to common shares increased 21.9 per cent to C$206 million for the year ended 31 December 2001 compared to C$169 million in 2000.
- Income before taxes and non-controlling interest in income of subsidiaries was C$377 million for the year ended 31 December 2001, an increase of 8.6 per cent over 2000.
- The cost:income ratio (excluding amortisation of goodwill and intangible assets) improved to 59.3 per cent from 65.2 per cent in 2000.
- Total assets of C$33.3 billion at 31 December 2001 (C$29.4 billion at 31 December 2000).
- Total capital ratio of 11.3 per cent and tier 1 capital ratio of 8.6 per cent at 31 December 2001 (11.5 per cent and 8.6 per cent respectively at 31 December 2000).
- Funds under management were C$10.6 billion at 31 December 2001 compared to C$10.2 billion at 31 December 2000.
HSBC Bank Canada recorded net income attributable to common shares for the year ended 31 December 2001 of C$206 million, 21.9 per cent higher than C$169 million for 2000. Income before taxes and non-controlling interest in income of subsidiaries was C$377 million for the year ended 31 December 2001, an increase of 8.6 per cent, compared to C$347 million for 2000. Net income attributable to common shares was C$49 million for the three months ended 31 December 2001, an increase of 28.9 per cent over the same period last year.
For the year ended 31 December 2001, the cost:income ratio, excluding amortisation of goodwill and intangible assets, was 59.3 per cent compared to 65.2 per cent for 2000. For the quarter ended 31 December 2001, the cost:income ratio was 63.3 per cent compared to 61.0 per cent for the comparable period in 2000.
Return on equity was 14.9 per cent for the year ended 31 December 2001, compared to 15.3 per cent for the same period in 2000 due primarily to a higher level of retained capital. Return on equity was 13.3 per cent for the three months ended 31 December 2001, compared to 12.1 per cent for the same period in 2000.
Martin Glynn, president and chief executive officer of HSBC Bank Canada said: "We are pleased with the results for 2001, as the underlying business of the bank performed strongly. There was improved profitability from all of our business lines despite the challenging economic environment. We are also proud of the increasing recognition in independent market surveys of the high quality of our customer service.
"Higher net interest income was achieved from a combination of growth in the loan and customer deposit portfolios and higher spreads due to improved pricing and lower funding costs. Equity markets performed poorly, resulting in lower capital market and trading revenues. However, this was more than offset by cost containment measures and reduced performance-related expenses as a result of the poor markets.
"Although the credit quality of our loan portfolio remains sound, we felt it prudent to increase provisions compared to the third quarter of 2001 to cover a small number of deteriorating commercial facilities and to maintain general allowances at an appropriate level.
"In 2002 we will build upon the achievements of 2001, in an environment of continuing risk and uncertainty. We will aim to do this by providing the highest levels of customer service in Canada and using HSBC's international presence and expertise."
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