HSBC Bank Canada posts $157-million profit in Q3

Profits rebounded for HSBC Bank Canada in the third quarter following a sluggish Q2.

The bank recorded a profit before income tax of $157 million — up from $8 million in the previous quarter.

“Our results this quarter are markedly better than in the first two quarters of the year, largely due to moderating expected credit losses,” Linda Seymour, president and CEO of HSBC Bank Canada, said in a statement.

The bank’s change in expected credit losses resulted in a release of $2 million, compared to a charge in expected credit losses of $190 million recorded in the previous quarter.

HSBC’s commercial banking division recorded a profit of $128 million, compared to a loss of $14 million in the previous quarter. Results also improved in global banking and markets, which recorded a profit of $47 million, compared to a profit of $27 million in Q2.

Profits were down to $12 million in wealth and personal banking after reaching $14 million in Q2. In a release, HSBC said higher fee income and an increase in wealth balances were “more than offset by lower net interest income” due to rate cuts from central banks and the higher costs of maintaining increased liquidity.

Total operating expenses were $317 million in the quarter, up from $304 million in Q2.

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