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02 Nov 2011

HSBC Bank Canada third quarter 2011 results

 

  • Profit attributable to common shareholders was C$182m for the quarter ended 30 September 2011, an increase of 46.8% over the same period in 2010.
  • Profit attributable to common shareholders was C$515m for the nine months ended 30 September 2011, an increase of 18.4% over the same period in 2010.
  • Return on average common equity was 18.9% for the quarter ended 30 September 2011 and 18.9% for the nine months ended 30 September 2011 compared with 13.9% and 17.1% respectively for the same periods in 2010. (1)
  • The cost efficiency ratio was 50.3% for the quarter ended 30 September 2011 and 52.7% for the nine months ended 30 September 2011 compared with 52.5% and 51.1% respectively for the same periods in 2010.
  • Total assets were C$80.6bn at 30 September 2011 compared with C$81.3bn at 30 September 2010.
  • Total assets under administration decreased to C$30.0bn at 30 September 2011 from C$31.0bn at 30 September 2010.
  • Tier 1 capital ratio of 13.4% and a total capital ratio of 16.1% at 30 September 2011 compared to 13.1% and 15.8% respectively at 30 September 2010, and 13.3% and 16.0% respectively at 31 December 2010. (1)

 

Results are based on the unaudited financial statements for the period, prepared in accordance with International Financial Reporting Standards ('IFRS'), which the bank adopted on 1 January 2011. All comparative figures, which were previously reported under Canadian generally accepted accounting principles, have been restated to conform with IFRS. Please refer to the unaudited financial statements and notes in our Third Quarter 2011 Interim Report.

The abbreviations 'C$m' and 'C$bn' represent millions and billions of Canadian dollars, respectively.

(1) Calculated using guidelines issued by the Office of the Superintendent of Financial Institutions ('OSFI') in accordance with Basel II capital adequacy framework.

Overview

HSBC Bank Canada recorded profit of C$201m for the third quarter of 2011, an increase of C$55m, or 37.7% compared with C$146m for the third quarter of 2010. Profit for the nine months ended 30 September 2011 was C$569m, an increase of C$69m, or 13.8% compared to the same period in 2010. Profit attributable to common shareholders was C$182m for the third quarter of 2011, and C$515m for the nine months ended 30 September 2011, increases of C$58m, or 46.8%, and C$80m, or 18.4%, respectively over the same periods in 2010. This increase in profits in 2011 was primarily due to lower loan impairment charges and higher fee income, partially offset by lower net interest income and increased operating expenses.

Commenting on the results, Lindsay Gordon, President and Chief Executive Officer of HSBC Bank Canada, said:

"HSBC Bank Canada continued to deliver solid results in the third quarter largely due to our strong business fundamentals, lower loan impairment charges and higher fee income. Canada has been a great place for HSBC to do business for 30 years. We continue to grow - seeking to expand our commercial banking business, particularly in central Canada, and investing in our global banking and markets, and retail banking and wealth management businesses - leveraging the global capabilities of the HSBC Group to meet the financial services needs of our customers."

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