Grupo Financiero HSBC, S.A. DE C.V. third quarter 2014 financial results - highlights
- Net income before tax for the nine months to 30 September 2014 was MXN2,919m, a decrease of MXN1,202m or 29.2% compared with MXN4,121m for the same period in 2013. The results for the nine months to 30 September 2013 included MXN744m income related to the recognition of a distribution agreement signed with AXA Group. Excluding this effect, net income before taxes decreased 13.6% compared with the same period in 2013.
- Net income for the nine months to 30 September 2014 was MXN2,482m, a decrease of MXN523m or 17.4% compared with MXN3,005m for the same period 2013, mainly due to lower profit before taxes from reduced total operating income and higher administrative and personnel expenses; partially offset by lower loan impairment charges and tax expenses. Excluding the effect of the AXA distribution agreement and discontinued operations, net income increased 20.7% compared with the same period in 2013.
- Total operating income, net of loan impairment charges, for the nine months to 30 September 2014 was MXN19,409m, a decrease of MXN777m or 3.8% compared with MXN20,186m for the same period in 2013.
- Loan impairment charges for the nine months to 30 September 2014 were MXN5,233m, a decrease of MXN588m or 10.1% compared with MXN5,821m for the same period in 2013.
- Administrative and personnel expenses for the nine months to 30 September 2014 were MXN16,528m, an increase of MXN432m or 2.7% compared with MXN16,096m for the same period in 2013.
- The cost efficiency ratio increased to 67.1% for the nine months to 30 September 2014, compared with 61.9% for the same period in 2013, mainly due to reduced total operating income and higher administrative and personnel expenses.
- Net loans and advances to customers were MXN197.8bn at 30 September 2014, an increase of MXN11.3bn or 6.1% compared with MXN186.4bn at 30 September 2013. Total impaired loans as a percentage of gross loans and advances as at 30 September 2014 increased to 6.3% compared with 5.3% at 30 September 2013.
- At 30 September 2014, deposits were MXN269.3bn, an increase of MXN14.3bn or 5.6% compared with MXN255.0bn at 30 September 2013.
- Return on equity was 6.0% for the nine months to 30 September 2014 compared with 7.6% for the same period in 2013.
- At 30 September 2014, the bank’s total capital adequacy ratio was 13.9% and the tier 1 capital ratio was 11.4% compared with 15.6% and 12.7% respectively at 30 September 2013.
- In the first quarter of 2014, the bank paid a dividend of MXN576m, representing MXN0.30 per share, and Grupo Financiero HSBC paid a dividend of MXN3,781m, representing MXN1.34 per share.
2013 results have been restated to reflect the general insurance manufacturing businesses and HSBC Fianzas, the bonding company, which have been sold, as discontinued operations.
HSBC Mexico S.A. (the bank) is a subsidiary of Grupo Financiero HSBC, S.A. de C.V.’s (Grupo Financiero HSBC) and is subject to supervision by the Mexican Banking and Securities Commission. The bank is required to file financial information on a quarterly basis (in this case for the quarter ended 30 September 2014) and this information is publicly available. Given that this information is available in the public domain, Grupo Financiero HSBC, S.A. de C.V. has elected to file this release. HSBC Seguros, S.A. de C.V. Grupo Financiero HSBC (HSBC Seguros) is Grupo Financiero HSBC’s insurance group.
Results are prepared in accordance with Mexican GAAP (Generally Accepted Accounting Principles).
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Notes to editors:
Grupo Financiero HSBC is one of the leading financial groups in Mexico with 983 branches, 5,825 ATMs and approximately 17,500 employees. For more information, visit www.hsbc.com.mx.
Grupo Financiero HSBC is a 99.99% directly owned subsidiary of HSBC Latin America Holdings (UK) Limited, which is a wholly owned subsidiary of HSBC Holdings plc, and a member of the HSBC Group. With around 6,200 offices in 74 countries and territories in Asia, Europe, North and Latin America, the Middle East and North Africa and with assets of US$2,754bn at 30 June 2014, the HSBC Group is one of the world’s largest banking and financial services organisations.
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