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HSBC Bank Canada first quarter 2008 results - highlights
6 May 2008
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Net income attributable to common shares was C$155 million for the quarter ended 31 March 2008, an increase of 11.5 per cent over the same period in 2007.
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Return on average common equity was 21.2 per cent for the quarter ended 31 March 2008 compared with 22.0 per cent for the same period in 2007.
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The cost efficiency ratio was 48.7 per cent for the quarter ended 31 March 2008 compared with 52.2 per cent for the same period in 2007.
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Total assets were C$66.5 billion at 31 March 2008 compared with C$60.9 billion at 31 March 2007.
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Total funds under management were C$26.3 billion at 31 March 2008 compared with C$25.1 billion at 31 March 2007.
Results are prepared in accordance with Canadian generally accepted accounting principles.
Overview
HSBC Bank Canada recorded net income attributable to common shares of C$155 million for the quarter ended 31 March 2008, an increase of C$16 million, or 11.5 per cent, from C$139 million for the first quarter of 2007. Compared to the fourth quarter of 2007, net income attributable to common shares was C$44 million, or 39.6 per cent, higher in the first quarter of 2008. Results for the quarter ended 31 December 2007 were impacted by a charge of C$27 million, after related income taxes, relating to the bank’s holdings of Canadian non-bank sponsored Asset Backed Commercial Paper ("non-bank ABCP"). Excluding this charge, net income attributable to common shares in the quarter ended 31 March 2008 was 12.3 per cent higher than the fourth quarter of 2007.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said: "HSBC Bank Canada has made a satisfactory start to 2008 in light of a difficult market. Uncertain conditions continue to affect the banking industry resulting in a reduction in interest margins, although trading revenues have increased due to market volatility. Despite the economic uncertainty, our customer franchise remains very strong and drives the majority of our revenue streams. The impact of our brand building activities, including HSBC’s recent advertising campaign at Toronto’s Pearson International Airport, together with our customer focused service propositions, is demonstrated by the success of our Direct Savings Account and the continued growth in the number of HSBC Premier Customers.
For the remainder of 2008, we will focus on increasing our customer base by continuing to enhance our HSBC Premier and HSBC Direct customer service propositions while growing our commercial business in a focused manner consistent with economic uncertainty."
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