(October 31 – 11:05) – HSBC Bank Canada is reporting mildly improved results for the third quarter.

The firm says that net income reached $50 million for the quarter ended September 30, up 11.1% from the quarter last year. Return on common equity was 17% for the quarter, down from 19.4% last year. The total capital ratio was 11% and the Tier 1 capital ratio was 8.1%, both up slightly from 1999. The firm raised $100 million through the issuance of additional common shares in August.

Martin Glynn, president and chief executive officer, said, “Our results for the quarter were in line with expectations. The bank continues to experience strong growth in interest earning assets, particularly commercial loans, and in wealth management activities.” He highlighted the firm’s launch of online banking in the last quarter, and the firm’s increased focus on cost cutting. “Looking ahead, we will continue to streamline administrative processes of our branches and our range of delivery channels. We have the right people and the strategies in place and I am confident of our ability to continue delivering value to our customers.”

Net interest income for the third quarter of 2000 was $171 million, up by 25.7% over the third quarter of 1999. Continued growth in interest earning loans, especially in commercial advances, helped boost year-on-year performance. The acquisition of Republic National Bank of New York also added $974 million in loans.

Other income was $106 million in the third quarter, up 11.6%. Funds under management increased 40.0% from the third quarter of 1999 to $12.3 billion at September 30. This growth, combined with increased corporate finance fees, boosted investment and securities services revenue to $163 million in the year to date, up by $61 million over the same period in 1999. In the third quarter this slowed, bringing investment and securities services income to $43 million from $52 million in the second quarter.

Non-interest expenses rose to $177 million from $155 million in the quarter due to higher salaries and employee benefits, driven by growth in performance-based compensation and volume-driven transaction expenses. The provision for credit losses was up to $10 million for the third quarter of 2000 from $7 million for the same period in 1999.
-IE Staff