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HSBC Bank Canada first quarter 2009 results
07 May 2009
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Net income attributable to common shares was C$85 million for the quarter ended 31 March 2009, a decrease of 52.8 per cent over the same period in 2008.*
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The cost efficiency ratio was 49.1 per cent for the quarter ended 31 March 2009 compared with 46.7 per cent for the same period in 2008.
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Return on average common equity was 10.0 per cent for the quarter ended 31 March 2009 compared with 21.7 per cent for the same period in 2008.
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Total assets were C$70.1 billion at 31 March 2009 compared with C$71.7 billion at 31 March 2008.
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Total funds under management were C$21.5 billion at 31 March 2009 compared with C$26.3 billion at 31 March 2008.
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Tier 1 capital ratio of 10.2 per cent and a total capital ratio of 12.6 per cent at 31 March 2009 compared to 9.1 per cent and 11.3 per cent respectively at 31 March 2008. **
Results are prepared in accordance with Canadian generally accepted accounting principles.
* Restated to reflect accounting for the acquisition of HSBC Financial Corporation Limited ("HSBC Financial") on 30 November 2008. Interim period results prior to 31 December 2008 have been restated to combine the previously reported results of the bank with those of HSBC Financial to reflect the continuity of interests method of accounting, as detailed in note 2 to the consolidated financial statements in the 2008 Annual Report. References in this news release to "banking operations" relate to those excluding HSBC Financial and "consumer finance" refers to the businesses of HSBC Financial.
** Calculated using guidelines issued by the Office of the Superintendent of Financial Institutions in accordance with Basel II capital adequacy framework. 31 March 2008 ratios have not been restated to include HSBC Financial.
Overview
HSBC Bank Canada recorded net income attributable to common shares for the three months ended 31 March 2009 of C$85 million, a decrease of 52.8 per cent compared to C$180 million reported in the same period in 2008, and a decrease of C$30 million, or 26.1 per cent, from C$115 million for the fourth quarter of 2008. This includes the results of the Consumer Finance business which made a net loss attributable to common shares of C$16 million in the first quarter of 2009 compared to net income attributable to common shares of C$25 million recorded in the same period of 2008 and C$9 million in the fourth quarter of 2008.
Commenting on the results, Lindsay Gordon, President and Chief Executive Officer of HSBC Bank Canada, said:
"Canada, along with most developed economies, is in recession and this inevitably affected our results in the first quarter. Credit provisions increased and net interest margins declined due to falling interest rates and a very competitive market for deposits. While the economic outlook for the rest of 2009 remains challenging, we remain committed to supporting our core customer relationships and focusing on costs in a less certain environment for revenues. We have a strong and liquid balance sheet further enhanced by a successful preferred share offering completed after the quarter end, and remain committed to maintaining our traditional financial strength."
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HSBC Bank Canada first quarter 2009 results - full release
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