The world's local bank
HSBC Bank Canada - Q3 2002 Results
24 October 2002
- Net income was C$195 million for the nine months ended 30 September 2002, an increase of 19.6 per cent from C$163 million in the same period of 2001.
- Net income was C$78 million for the quarter ended 30 September 2002, an increase of 36.8 per cent from C$57 million in the third quarter of 2001.
- Return on average common equity was 16.5 per cent for the nine months ended 30 September 2002 and 20.1 per cent for the quarter ended 30 September 2002.
- The cost:income ratio (excluding amortisation of goodwill and intangible assets) was 55.3 per cent for the nine months ended 30 September 2002 and 49.8 per cent for the quarter ended 30 September 2002, compared with 57.9 per cent and 56.7 per cent for the respective periods in 2001.
- Total assets of C$35.8 billion at 30 September 2002 compared to C$32.6 billion at 30 September 2001.
- Total assets under administration were C$14.1 billion at 30 September 2002, of which C$10.0 billion were funds under management and C$4.1 billion were custody and administration accounts.
HSBC Bank Canada recorded net income of C$195 million for the nine months ended 30 September 2002, an increase of C$32 million, or 19.6 per cent, from C$163 million for the nine months ended 30 September 2001. Net income for the quarter ended 30 September 2002 was C$78 million compared to C$57 million for the third quarter of 2001, an increase of 36.8 per cent. The increase was primarily attributed to higher net interest income and a lower effective tax rate, partially offset by a larger credit loss provision.
Martin Glynn, President and Chief Executive Officer, said: “Net interest income continues to be strong and benefited from continued growth in our residential mortgage portfolio and higher net interest margins during the quarter. We are encouraged that revenue from our non-market sensitive lines of business has continued to grow. However, weakness in the equity markets has continued to dampen our capital market revenues relative to the prior year comparative periods.
“Provisions for credit losses were higher in the third quarter of 2002 compared to the third quarter of last year but were lower than the second quarter of 2002. Overall, underlying credit quality remains strong and we remain adequately provisioned.
“From a customer perspective, there have already been many success stories where HSBC clients, from both sides of the border, have benefited as a result of our North American alignment. We are striving to provide our customers with seamless cross-border service and products they should expect from a truly North American bank. This will clearly differentiate us from our competitors and strengthen the reputation of HSBC as ‘The world’s local bank’.
“I would like to take this opportunity to thank our staff for their high quality work and continued efforts to maintain our excellent customer service and good results during uncertain international economic conditions.”
Press Release
Increase font
Decrease font