HSBC Bank Canada third quarter 2003 results
20 October 2003
- Net income* was C$227 million for the nine months ended 30 September 2003, an increase of 16.4 per cent over the same period in 2002.
- Net income was C$81 million for the quarter ended 30 September 2003, an increase of 3.8 per cent over the third quarter of 2002.
- Return on average common equity was 19.3 per cent for the nine months ended 30 September 2003 and 19.7 per cent for the quarter ended 30 September 2003.
- The cost:income ratio was 55.9 per cent for the nine months ended 30 September 2003 and 55.3 per cent for the quarter ended 30 September 2003.
- Total assets of C$37.0 billion at 30 September 2003 compared to C$35.8 billion at 30 September 2002.
- Total assets under administration were C$17.5 billion at 30 September 2003, of which C$13.5 billion were funds under management and C$4.0 billion were custody and administration accounts.
*HSBC Bank Canada acquired Merrill Lynch HSBC Canada Inc. (‘MLHSBC’) on 31 October 2002. For financial reporting, the income and expenses of MLHSBC were accounted for effective 1 July 2002, the date on which the HSBC Group acquired full ownership of MLHSBC, and were recorded in the results for the fourth quarter of 2002.
HSBC Bank Canada recorded net income of C$81 million for the quarter ended 30 September 2003, an increase of 3.8 per cent, compared with C$78 million for the third quarter of 2002. Net income for the nine months ended 30 September 2003 was C$227 million, an increase of C$32 million, or 16.4 per cent, compared with C$195 million for the nine months ended 30 September 2002.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, Designate, said: “The results for the quarter were satisfactory given the subdued economic conditions we experienced during the quarter. Net income benefited from lower credit losses and higher non-interest income compared with the same period in 2002. The continued improvement in equity markets encouraged retail clients to trade more frequently and increased retail sharedealing revenues.
“Historically low interest rates continued to provide stimulus for an active housing market. Strong growth in residential mortgages and consumer loans benefited net interest income. However, competitive pricing and increased funding costs reduced the net interest margin. Credit losses in the quarter decreased compared with the same period last year due to the improved credit environment.
“With recent negative events such as the SARS outbreak, ‘mad-cow’ disease, forest fires in British Columbia and the electricity blackout in Ontario largely behind us, we are hopeful that consumer confidence will strengthen and provide momentum for economic growth in Canada, although this is also dependent on the continuing economic recovery in the US. With our broad range of services and products to offer our clients in Canada, we are well positioned to take advantage of any growth opportunities.”
The full news release is available as a downloadable file on the right.
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