(January 30 – 10:30 ET) – HSBC Bank (Canada) is reporting improved results for the year ended December 31.

Net income was $184 million for the year, up 11.5% from 1999. Income before taxes and non-controlling interest of subsidiaries was $347 million, up 42.2% year over year. The firm generated a return on average common equity of 15.3%, down from 18.4% in 1999. The bank says return on equity slipped due to regulatory requirements to increase capital ratios, and a higher provision for income taxes.

Funds under management were flat from 1999 at $10.2 billion at December 31, exactly where it was a year earlier, although this includes the transfer out of $1.8 billion resulting from the sale of HSBC InvestDirect (Canada) Inc. to Merrill Lynch Inc. for $110 million in the fourth quarter.

Martin Glynn, president and chief executive officer, said, “Our results for the quarter and the year were in line with expectations and showed strong growth in pretax income. Our emphasis on improving operational efficiency and controlling expenses continued to show positive results, as demonstrated through an improved cost:income ratio.”

Looking ahead to next year the bank has high hopes for its online joint venture with Merrill Lynch. Glynn says, “In 2001 we will continue to organize our business around our customers to anticipate and meet their needs. We have an excellent team of employees who will continue to work to deliver a ‘world of financial services’ to our customers.”
-IE Staff