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HSBC Bank Canada announces third quarter 2005 results
25 October 2005
- Net income attributable to common shares was C$325 million for the nine months ended 30 September 2005, an increase of 25.5 per cent over the same period in 2004.
- Net income attributable to common shares was C$113 million for the quarter ended 30 September 2005, an increase of 37.8 per cent over the third quarter of 2004.
- Return on average common equity was 20.4 per cent for the nine months ended 30 September 2005 and 20.9 per cent for the quarter ended 30 September 2005 compared with 19.0 per cent and 16.4 per cent, respectively, for the same periods in 2004.
- The cost:income ratio was 52.9 per cent for the nine months ended 30 September 2005 and 51.2 per cent for the quarter ended 30 September 2005 compared with 56.1 per cent and 58.1 per cent, respectively, for the same periods in 2004.
- Total assets were C$49.4 billion at 30 September 2005 compared with C$42.3 billion at 30 September 2004.
- Total funds under management were C$19.9 billion at 30 September 2005 compared with C$16.2 billion at 30 September 2004.
HSBC Bank Canada recorded net income attributable to common shares of C$325 million for the nine months ended 30 September 2005, an increase of C$66 million, or 25.5 per cent, from C$259 million for the same period in 2004. Net income attributable to common shares for the quarter ended 30 September 2005 was C$113 million, an increase of C$31 million, or 37.8 per cent, from C$82 million for the quarter ended 30 September 2004.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer of HSBC Bank Canada, said: “Results for the quarter continue to be robust. The stable interest rates in Canada and strong economy continue to provide stimulus for growth. Net income in 2005 benefited from strong performance across all customer groups, which helped increase both net interest income and non-interest revenue.
“A stable credit environment in Canada and a strong economy has helped keep provision for credit losses lower in 2005 compared with 2004. In Personal Financial Services, growth in residential mortgages, consumer loans, and funds under management all contributed to improved performance. In Commercial Banking, growth in lending volumes contributed to strong revenue growth. Revenue in Corporate, Investment Banking and Markets was impacted by the flatter yield curve in 2005.
“We are excited about the launch of two new initiatives in the quarter which will help us to deepen our existing client relationships and attract new customers. Our LifeMap™ investment solution of bundled underlying mutual funds will help simplify investing as well as align investors’ changing needs throughout all stages of their life. Our MasterCard product was upgraded to include two new HSBC Rewards programs: HSBC Travel & Merchandise Rewards, or HSBC Cash Back Rewards.
“With our positive results for this quarter and year-to-date, we have good momentum leading into the final quarter of 2005. We will ensure that our focus remains on executing core business strategies to achieve our growth objectives.”
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HSBC Bank Canada Q3 results
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