HSBC Bank of Canada is reporting improved results for the year ended December 31. The bank said net income was $260 million, an increase of 21.5% from $214 million in the same period of 2001.

Net income was $65 million for the quarter ended 31 December 2002, an increase of 27.5% from $51 million in the fourth quarter of 2001.

The bank said the increases in the year and fourth quarter were primarily attributed to higher net interest income and other income and lower salaries and benefits. These were partially offset by higher other non-interest expenses.

Return on average common equity was 16.4% for the year and 15.9% for the quarter, compared to 14.9% and 13.3%, respectively, for the same periods in 2001.

The cost:income ratio was 56.4% for the year and 57.7% for the quarter, compared with 60.0% and 64.0% for the respective periods in 2001.

Total assets were $35.2 billion at Dec. 31 2002 compared to $33.3 billion at Dec. 31 2001.

Total assets under administration were $15.1 billion at Dec. 31 2002, of which $11.9 billion were funds under management and $3.2 billion were custody and administration accounts.

“Overall we are pleased with the results for the quarter and for the year ended 31 December 2002. Our retail and commercial banking businesses continued to perform well,” said Martin Glynn, president and CEO.

“In 2003 we will continue to focus on growing our core businesses. The acquisition of MLHSBC during the quarter will be an advantage to our wealth management business as clients will have more direct access to HSBC and will benefit from HSBC’s development of products and services”, he added. HSBC Bank Canada acquired Merrill Lynch HSBC Canada Inc. on Oct. 31, 2002.