HSBC Holdings PLC (HSBA) - HSBC Trinkaus & Burkhardt AG 3Q 2012 Results
RNS Number : 0849R
HSBC Holdings PLC
14 November 2012
The following text is the English version of a news release issued in Germany
by HSBC Trinkaus & Burkhardt AG, an 80.4% indirectly owned subsidiary of HSBC
14 November 2012
HSBC TRINKAUS & BURKHARDT AG
THIRD QUARTER 2012 RESULTS
· Operating profit of €178.9m was 10.4% higher than for the comparable
period of 2011 (€162.1m).
· Net profit of €124.6m was 8% higher than for the comparable period of
· Net interest income improved significantly by 24%, to €135.3m, compared
to the first nine months of 2011 (€109.3m).
· Net fee income of €293.4m was slightly below the comparable period of
· Core tier 1 capital ratio remains solid at 11.7% (31 December 2011:
In a difficult market environment HSBC Trinkaus & Burkhardt AG ('HSBC
Trinkaus' or the 'bank') recorded a strong performance in the first nine
months of 2012. Operating profit of €178.9m was 10.4% higher than for the
comparable period of 2011 (€162.1m). The increase was due primarily to higher
levels of net interest income and net trading income, partially offset by
higher administrative expenses arising from a one-off restructuring provision
in respect of the organisational effectiveness programme. At €124.6m, net
profit was 8% higher than for the first nine months of 2011 (€115.5m).
The core tier 1 capital ratio improved slightly to 11.7% compared with 11.5%
at 31 December 2011. The bank, which meets the higher capitalisation
requirements under Basel III, has sufficient capital to allow for further
business expansion. The bank's long-term 'AA' issuer rating was reaffirmed by
Fitch in April 2012. HSBC Trinkaus therefore retains the highest Fitch rating
of all the German private commercial banks.
Net interest income increased significantly, up 24%, to €135.3m, compared to
the first nine months of 2011 (€109.3m). The increase is attributable to
higher volumes of loans and advances to customers and an increased holding of
financial assets used as a liquidity cushion. This increase was achieved
against a backdrop of declining margins in the deposit, and to a lesser extent
the lending, businesses.
There was a net release of loan impairment and other credit risk of €1.4m in
the first nine months of 2012 (€12.8m in the comparable period in 2011). An
increase in collectively assessed impairments was more than offset by releases
of individually assessed impairments against a small number of exposures.
At €293.4m, net fee income was just below the net fee income for the
comparable period in 2011 (€296.0m). In the securities and investment banking
businesses, reduced customer demand resulted in lower transaction volumes in
line with reduced market turnover. The resulting fall in net fee income was
largely offset by an increase in fees from the foreign exchange and
Net trading income improved by 53.1% to €147.4m (€96.3m in the first nine
months of 2011). This increase was primarily due to a one-off gain in equity
trading arising during the second quarter of the year, augmented by higher
treasury trading results.
Administrative expenses increased by 8.1% to €397.1m (€367.2m in the first
nine months of 2011) mainly due to a one-off restructuring provision. At 68.2%
the cost efficiency ratio remained within an appropriate range of 65% to 70%
for the business model of HSBC Trinkaus. The moderate decline in the size of
the workforce, following theorganisationaleffectivenessprogramme, should lead
to a significant decrease in administrative expenses. The benefits from the
programme have already had a positive impact in reducing other administrative
expenses during the third quarter of 2012.
Income from financial assets improved by €3.0m to €9.5m for the first nine
months of 2012. Write-downs of investments in the real estate sector were
offset by higher gains on disposals and releases of impairments against
HSBC Trinkaus' total assets increased by 19.1% since the end of 2011, to
€24.6bn as at 30 September 2012 (31 December 2011: €20.6bn). 50% of assets are
funded by customer deposits, which remain the bank's main source of funding.
The bank's financial position remains characterised by excellent liquidity.
HSBC Trinkaus' capital ratio remains high at 15.0%, the same level as 31
Business segment information
The Institutional Clients, Corporate Banking and Global Markets segments
improved their results compared to first nine months of 2011. On the other
hand, earnings in the high net worth private clients business declined due to
lower levels of client-led business activities in the current uncertain
Thanks to its proven business model and strong capital base HSBC Trinkaus is
in a strong position and will continue to work towards achieving its growth
strategy in all business segments. Despite the fact that there are indicators
of a slowdown in economic activity in Germany, the bank is anticipating
earnings around the prior-year level for 2012.
Media enquiries to Steffen Pörner on +49 211 910-1664 or at
Notes to editors:
1. HSBC Trinkaus & Burkhardt AG
HSBC Trinkaus is a commercial bank which draws on its more than 227-year-old
tradition as a trusted advisor to its clients. It is one of Germany's leading
banks and a member of the HSBC Group, one of the world's largest banking and
financial services organisations. HSBC Trinkaus' particular strength lies in
its detailed knowledge of the international markets, mainly the emerging
markets, and in its global network which helps its clients grasp international
opportunities. With more than 2,500 employees HSBC Trinkaus can be found in
seven locations in Germany in addition to the head office in Düsseldorf and
has access to the global network of the HSBC Group. With total assets of
€24.6bn and €144.6bn in funds under management and administration and a
long-term 'AA' issuer rating unchanged since December 2007, the bank has the
highest Fitch rating of any of the German private commercial banks. The bank's
central target groups are corporate clients, institutional clients and wealthy
private clients. (Figures as at 30 September 2012).
HSBC Trinkaus' press releases can be found on the www.hsbctrinkaus.de homepage
2. HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 6,900 offices in over
80 countries and territories in Europe, the Asia-Pacific region, North and
Latin America, and the Middle East and North Africa. With assets of US$2,721bn
at 30 September 2012, the HSBC Group is one of the world's largest banking and
financial services organisations.
This information is provided by RNS
The company news service from the London Stock Exchange
QRTUSVWRUWAAARA -0- Nov/14/2012 10:00 GMT
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