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HSBC Bank Canada 2002 interim results
22 July 2002
- Net income was C$117 million for the half-year ended 30 June 2002, an increase of 10.4 per cent over the same period in 2001.
- Net income was C$41 million for the quarter ended 30 June 2002, a decrease of 19.6 per cent over the second quarter of 2001.
- Return on average common equity was 14.8 per cent for the six months ended 30 June 2002 and 10.1 per cent for the quarter ended 30 June 2002.
- The cost:income ratio (excluding amortisation of goodwill and intangible assets) was 58.1 per cent for the half-year ended 30 June 2002 and 64.2 per cent for the quarter ended 30 June 2002.
- Total assets of C$35.1 billion at 30 June 2002 compared to C$30.8 billion at 30 June 2001.
- Total assets under administration were C$15.4 billion at 30 June 2002, of which C$11.0 billion were funds under management and C$4.4 billion were custody and administration accounts.
HSBC Bank Canada recorded net income of C$117 million for the six months ended 30 June 2002, an increase of C$11 million, or 10.4 per cent, from C$106 million for the six months ended 30 June 2001. Net income for the quarter ended 30 June 2002 was C$41 million compared to C$51 million for the second quarter of 2001, a decrease of 19.6 per cent. The decrease largely resulted from a one-off restructuring cost of C$28 million as a result of the withdrawal from institutional equity sales, trading and research activities.
Martin Glynn, President and Chief Executive Officer, said: "Growth in net interest income compensated for higher credit loss provisions and one-off expenses recorded in the second quarter of 2002. While the difficult capital market conditions during the first half of 2002 continued to have a negative impact on our capital market revenues, fee income from personal and commercial banking showed good growth over the prior year comparative periods.
"Provisions for credit losses rose in the quarter to cover an exposure in the telecommunications sector. However, our underlying credit quality remains strong, we remain prudently provisioned and our allowance for credit losses exceeds the total of impaired loans.
"The decision to withdraw from institutional equities sales, trading and research activities was a difficult one, but we believe that it was necessary. We must ensure that we continue to operate in businesses that are profitable or strategically relevant to our North American and international operations.
"The expansion of our wealth management business is a core component of HSBC's overall growth strategy for Canada. As we continue to implement this strategy, I am confident that we will be successful in maintaining our reputation for outstanding customer service."
News release
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