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HSBC Bank Canada first quarter 2006 results
02 May 2006
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Net income attributable to common shares was C$116 million for the quarter ended 31 March 2006, an increase of 7.4 per cent over the same period in 2005.
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Return on average common equity was 20.7 per cent for the quarter ended 31 March 2006 compared with 20.9 per cent for the same period in 2005.
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The cost efficiency ratio was 53.1 per cent for the quarter ended 31 March 2006 compared with 53.0 per cent for the same period in 2005.
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Total assets were C$52.3 billion at 31 March 2006 compared with C$45.0 billion at 31 March 2005.
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Total funds under management were C$30.4 billion at 31 March 2006 compared with C$23.9 billion at 31 March 2005.
* Results are prepared in accordance with Canadian generally accepted accounting principles.
Overview
HSBC Bank Canada recorded net income attributable to common shares of C$116 million for the quarter ended 31 March 2006, an increase of C$8 million, or 7.4 per cent, from C$108 million for the first quarter of 2005. Compared to the fourth quarter of 2005, net income attributable to common shares was C$16 million lower as net income in the fourth quarter of 2005 benefited from a C$14 million reversal from the general allowance for credit losses and a C$14 million adjustment to other expenses, both before income taxes. Excluding these items and the related income tax adjustments, net income attributable to common shares would have been C$107 million in the fourth quarter of 2005.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: “HSBC Bank Canada is off to a good start in fiscal 2006, with solid year-over-year revenue and net income growth. The increases were broad based and reflected solid contribution from each of our customer groups. Net interest income, as well as non-interest revenue, was higher across our businesses. However, the competitive environment continues to impact our net interest margin. In growing our business, we have actively managed to contain our costs, which has resulted in a stable cost efficiency ratio. Lastly, the stable credit environment in Canada has resulted in continued low provision for credit losses.
“Our focus for the rest of this year is to achieve sustainable revenue growth by retaining and deepening existing customer relationships and acquiring new customers. We will do this by continuing to listen to our customers and introducing new products to meet their needs, while investing in our brand and improving our sales process. We will continue to invest in our businesses and reallocate resources to areas of growth.”
Read the full media release. (9 page pdf 165k)
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