OREANDA-NEWS. HSBC Bank Canada reports second quarter 2017 financial results

  • Profit before income tax expense for the quarter ended 30 June 2017 was $228m, an increase of 35.7% compared with the same period in 2016.

  • Profit attributable to the common shareholder was $158m for the quarter ended 30 June 2017, an increase of 42.3% compared with the same period in 2016.

  • Return on average common equity was 13.3% for the quarter ended 30 June 2017 compared with 9.8% for the same period in 2016.

  • The cost efficiency ratio was 64.1% for the quarter ended 30 June 2017 compared with 57.3% for the same period in 2016.

  • In its annual Awards for Excellence, Euromoney magazine named HSBC the ‘World's Best Bank’. HSBC was also named the top bank in several other categories including ‘Best Transaction Bank in North America.’

  • Total assets were $95.8bn at 30 June 2017 compared with $94.7bn at 31 December 2016.

  • Common equity tier 1 capital ratio was 10.5%, tier 1 ratio 12.4% and total capital ratio 14.7% at 30 June 2017.

The abbreviations‘$m’ and ‘$bn’ represent millions and billions of Canadian dollars, espectively.

Overview

HSBC Bank Canada reported a profit before income tax expense of $228m for the second quarter of 2017, an increase of $60m, or 36% compared with the second quarter of 2016. The increase in profit before income tax is primarily due to recoveries of loan impairment charges from improved credit conditions mainly in the oil and gas industry compared to high impairment charges in the second quarter last year. This was partially offset by a decrease in trading revenues as a result of favorable fixed income trading activities in the prior year. Operating expenses were higher from the bank's continued investment in regulatory compliance, financial crime risk, and strategic spending to reduce future costs; as well as investments to support the growth of our businesses.

Commercial banking remains focused on enhancing and simplifying its delivery model, improving productivity for the benefit of its customers and employees. Our strategic plan is focused on growing market share through expansion in Eastern Canada, increasing productivity by deepening product penetration, streamlining processes and leveraging our differentiated product suite in Global Trade and Receivable Finance (GTRF) and Global Liquidity and Cash Management (GLCM), and building on our position as the leading international bank with improved positioning in US-Canada corridor. Global Banking and Markets generated higher event fee revenues through increased advisory and debt underwriting activities on a year to date basis by leveraging HSBC’s global network on behalf of its clients.

Retail Banking and Wealth Management had 4% growth in total relationship balances, with increased sales across our products consistent with our focus on growing and serving our customer base. We continue to invest in strategic initiatives to make our bank simpler, faster and better for our customers.