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07 May 2014

HSBC Bank Canada first quarter 2014 results

  • Profit before income tax expense for the quarter ended 31 March 2014 was C$233m, a decrease of 13.4% compared with the same period in 2013 and broadly unchanged compared with the fourth quarter of 2013.
  • Profit attributable to common shareholders was C$160m for the quarter ended 31 March 2014, a decrease of 6.4% compared with the same period in 2013.
  • Return on average common equity was 15.0% for the quarter ended 31 March 2014 compared with 16.3% for the same period in 2013.
  • The cost efficiency ratio was 51.9% for the quarter ended 31 March 2014 compared with 45.0% for the same period in 2013.
  • Total assets were C$84.3bn at 31 March 2014 compared with C$84.4bn at 31 March 2013.
  • Common equity tier 1 capital ratio was 10.8%, tier 1 ratio 12.9% and total capital ratio 14.5% at 31 March 2014 compared with 11.1%, 13.9% and 15.9% respectively at 31 March 2013.

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

Overview

HSBC Bank Canada reported a profit before income tax expense of C$233m for the first quarter of 2014, a decrease of C$36m, or 13%, compared with the first quarter of 2013 and broadly unchanged compared with the fourth quarter of 2013.

The decrease in profit before income tax expense compared with the same quarter last year was primarily due to lower net interest income from declining loan balances of the run-off consumer finance portfolio, lower net trading income from foreign exchange and rates products, and lower gains less losses from financial investments from balance sheet management activities. This was partially offset by lower loan impairment charges as a result of lower specific allowances for commercial customers.

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

“While broadly unchanged from the fourth quarter of 2013, our profit before tax in the first quarter of 2014 is solid at C$233m. I am encouraged to see more customers and prospects taking fuller advantage of the unparalleled global network HSBC offers. Other positive signs of momentum include increased commercial financing activity and strong growth in wealth management. As a priority growth market for HSBC, we will continue to invest and grow the business to help our customers fulfil their dreams and ambitions through our connections to international markets and businesses.”

About HSBC Bank Canada

HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in Canada. The HSBC Group serves customers worldwide from over 6,300 offices in over 75 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,758bn at 31 March 2014, HSBC is one of the world’s largest banking and financial services organizations.

Media enquiries to:
Sharon Wilks
Tel: 416 868 3878
Fabrice de Dongo
Tel: 416 868 8282

Read the full media release..

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