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HSBC Bank Canada, half-year results 2004
27 July 2004
Highlights:
- Net income was C$181 million for the half-year ended 30 June 2004, an increase of 24.0 per cent from C$146 million in the same period in 2003.
- Net income was C$89 million for the quarter ended 30 June 2004, an increase of 21.9 per cent from C$73 million for the quarter ended 30 June 2003.
- Return on average common equity was 20.5 per cent for the half-year and 19.7 per cent for the quarter ended 30 June 2004 compared with 19.1 per cent for the same periods in 2003.
- The cost:income ratio was 55.0 per cent for the half-year ended 30 June 2004 and 54.1 per cent for the quarter ended 30 June 2004 compared with 55.7 per cent and 56.6 per cent for the same periods in 2003.
- Total assets of C$40.8 billion at 30 June 2004 compared with C$36.1 billion at 30 June 2003.
- Total assets under administration were C$20.5 billion at 30 June 2004, of which C$15.8 billion were funds under management and C$4.7 billion were custody and administration accounts compared with C$12.4 billion and C$3.4 billion at 30 June 2003.
HSBC Bank Canada recorded net income of C$181 million for the half-year ended 30 June 2004, an increase of C$35 million, or 24.0 per cent, from C$146 million for the same period in 2003. Net income for the quarter ended 30 June 2004 was C$89 million, an increase of C$16 million, or 21.9 per cent, from C$73 million for the quarter ended 30 June 2003. Net income benefited from a C$4 million gain on sale of a subsidiary in the quarter ended 30 June 2004 and from a C$9 million one-time change in accounting for mortgage loan prepayment fees in the quarter ended 31 March 2004. Excluding these items, net income for the half-year ended 30 June 2004 was C$168 million, 15.1 per cent higher when compared with the same period in 2003. Net income in the quarter ended 30 June 2004, excluding the gain, was C$85 million, 16.4 per cent higher when compared with the quarter ended 30 June 2003.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: “Results for the quarter were encouraging and reflect good momentum in our core businesses. We continued to attract new customers, which contributed to strong asset growth in our personal and commercial customer groups. However, the continued competitive environment, particularly in residential mortgages and personal deposits, has impacted our net interest margins. We are pleased to see that our ongoing investment in wealth management has resulted in higher fee income. Credit losses for the quarter were stable compared with the same period in 2003 and is reflective of the improving economy in Canada and in the United States during 2004.
“As the acquisition of Intesa Bank Canada (Intesa) was successfully completed in the quarter ended 30 June 2004, I would like to take this opportunity to formally welcome customers and staff of Intesa to HSBC. While we do not expect Intesa to materially impact our results in 2004, the focus over the balance of the year will be to successfully integrate the operations of Intesa into ours. We will work hard to ensure that our new customers continue to receive the high levels of service they are accustomed to while introducing them to the expanded range of products and services that HSBC offers.”
The full text of the news release can be downloaded using the link on the right
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HSBC Bank Canada, half-year results 2004 - full news release
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