Profit before income tax expense for the quarter ended 31 March 2017 was $243m
Profit attributable to the common shareholder was $177m for the quarter ended 31 March 2017
Return on average common equity was 15.4% for the quarter ended 31 March 2017
The cost efficiency ratio was 61.5% for the quarter ended 31 March 2017
Total assets were $95.7bn at 31 March 2017
Common equity tier 1 capital ratio was 10.6%, tier 1 ratio 12.6% and total capital ratio 13.5% at 31
The abbreviations ‘$m’ and ‘$bn’ represent millions and billions of Canadian dollars, respectively.
HSBC Bank Canada reported a profit before income tax expense of $243m for the first quarter of 2017, an increase of $85m, or 54% compared with the first quarter of 2016. The increase is due to recoveries in loan impairment charges on improved credit quality in the oil and gas sector compared to the high impairment charges in the first quarter last year. This was partially offset by a decrease of $25m in trading revenues as a result of favourable changes in the credit valuation, debt valuation, and funding fair value adjustments on derivative contracts in the prior year.
Commercial banking remains focused on enhancing and simplifying its delivery model, improving
productivity for the benefit of its customers and employees. We continue to focus on international subsidiary
banking as a driver of growth through strategic trade corridors and leverage our global trade and cash
management product platforms for client acquisition and fee income.
Global Banking and Markets increased fee revenues through increased advisory and underwriting activities
on a year to date basis by leveraging HSBC’s global network on behalf of its clients.
Retail Banking and Wealth Management benefited from growth in assets under management during the
Commenting on the results, Sandra Stuart, President and Chief Executive Officer of HSBC Bank Canada,
“In the first quarter of 2017, profit before tax at HSBC Bank Canada was 54% higher than in the same quarter
in 2016. This was primarily due to significant improvements in the oil and gas sector which resulted in a net
recovery of loan loss provisions and was also central to a 243% increase in profit before tax in Commercial
Banking. In Global Banking & Markets, although profit before tax was down 42% compared to the same
period last year due to adverse credit valuation adjustments the business saw increased volume of deposits
and higher advisory and debt underwriting fees. In Retail Banking and Wealth Management, cost saving
initiatives and lower loan impairment charges drove a 110% increase in profit before tax. Canada is a great
place to do business and we are continuing to make significant investments to grow here. In the first quarter,
we expanded in key markets by hiring in Commercial Banking and Global Banking and Markets and continued
our drive to make the bank simpler and more secure for our clients, introducing biometric identification to
our mobile banking and preparing for the launch of additional innovations in Retail Banking and Wealth
Management. We also continued to invest in efficiency improvements, as well as in risk and compliance
resources and practices to protect our customers, our business and the financial system.”
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