HSBC Bank Canada reported a profit before income tax expense of $242 million for the second quarter of 2014, an increase of 33%, compared with the second quarter of 2013.
“There is good momentum in all our business lines with increased commercial lending, residential mortgages and customer activity in Global Banking and Markets, and significant growth in funds under management,” says Paulo Maia, president and CEO of HSBC Bank Canada. “However, spread compression and the accelerated planned run-off of the consumer finance portfolio have both negatively impacted revenue.
He adds, “Consistent with the HSBC Group’s global strategy, we continue to make strides to grow our business and make it more efficient while implementing global standards within Canada.”
Additional findings include:
- Profit before income tax expense was $475 million, an increase of 5.3% compared with the same period in 2013;
- Profit attributable to the common shareholder was $172 million, an increase of 52.2%;
- The cost efficiency ratio was 51.1% for the quarter
- Total assets were $83.1 billion, compared with $84.3 billion year end 2013; and
- Common equity tier 1 capital ratio was 11%, tier 1 ratio 12.4% and total capital ratio 14%.