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HSBC Bank Canada third quarter 2006 results - highlights
31 October 2006
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Net income attributable to common shares was C$138 million for the quarter ended 30 September 2006, an increase of 22.1 per cent over the quarter ended 30 September 2005.
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Net income attributable to common shares was C$369 million for the nine months ended 30 September 2006, an increase of 13.5 per cent over the same period in 2005.
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Return on average common equity was 23.0 per cent and 21.2 per cent for the quarter and nine months ended 30 September 2006 compared with 20.9 per cent and 20.4 per cent, respectively, for the same periods in 2005.
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The cost efficiency ratio was 48.2 per cent and 51.3 per cent for the quarter and nine months ended 30 September 2006 compared with 51.2 per cent and 52.9 per cent, respectively, for the same periods in 2005.
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Total assets were C$55.9 billion at 30 September 2006 compared with C$49.4 billion at 30 September 2005.
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Total funds under management were C$22.4 billion at 30 September 2006 compared with C$19.9 billion at 30 September 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$138 million for the quarter ended 30 September 2006, an increase of C$25 million, or 22.1 per cent, from C$113 million for the same period in 2005. This increase was due to a broad-based growth in total revenue. In particular, a growth in loan volumes drove net interest income and non-interest revenue upward, with the latter also benefiting from higher securitisation and wealth management income.
Net income attributable to common shares for the nine months ended 30 September 2006 was C$369 million compared with C$325 million for the same period in 2005, an increase of C$44 million, or 13.5 per cent.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: "Results for the third quarter were robust. Investments in areas such as wealth management and payments and cash management have helped to grow non-interest revenue on a year-on-year basis and throughout this year. The cost efficiency ratio improved because we were able to make our business more efficient without impacting our traditionally high customer service values.
"We are, therefore, well placed to continue growth through the remainder of 2006 and into next year. Our strategic focus remains on maintaining very high standards of customer care while investing in expansion in carefully targeted sectors.
"We will only be able to achieve our goals if we have the full support of our staff. Our people make this business a success and I am immensely proud that HSBC Bank Canada has been named one of 'The Financial Post's 10 Best Companies to Work For' in Canada and one of MediaCorp's 'Canada's Top 100 Employers'. This will solidify our standing as an employer of choice, which will help serve our customers and grow our business into the future."
Read the full media release. (11 page pdf 65k )
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HSBC Bank Canada third quarter 2006 results â highlights
(11 page pdf 65K)
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