HSBC Bank Canada First Quarter 2014 Results

VANCOUVER, May 7, 2014 /CNW/ - 


        --  Profit before income tax expense for the quarter ended 31 March
            2014 was C$233m, a decrease of 13.4% compared with the same
            period in 2013 and broadly unchanged compared with the fourth
            quarter of 2013.
        --  Profit attributable to common shareholders was C$160m for the
            quarter ended 31 March 2014, a decrease of 6.4% compared with
            the same period in 2013.
        --  Return on average common equity was 15.0% for the quarter ended
            31 March 2014 compared with 16.3% for the same period in 2013.
        --  The cost efficiency ratio was 51.9% for the quarter ended 31
            March 2014 compared with 45.0% for the same period in 2013.
        --  Total assets were C$84.3bn at 31 March 2014 compared with
            C$84.4bn at 31 March 2013.
        --  Common equity tier 1 capital ratio was 10.8%, tier 1 ratio
            12.9% and total capital ratio 14.5% at 31 March 2014 compared
            with 11.1%, 13.9% and 15.9% respectively at 31 March 2013.

The abbreviations "C$m" and "C$bn" represent millions and billions of Canadian 
dollars, respectively.


HSBC Bank Canada 

Financial Commentary

------------------------------

Overview

HSBC Bank Canada reported a profit before income tax expense of C$233m for the 
first quarter of 2014, a decrease of C$36m, or 13%, compared with the first 
quarter of 2013 and broadly unchanged compared with the fourth quarter of 2013.

The decrease in profit before income tax expense compared with the same 
quarter last year was primarily due to lower net interest income from 
declining loan balances of the run-off consumer finance portfolio, lower net 
trading income from foreign exchange and rates products, and lower gains less 
losses from financial investments from balance sheet management activities. 
This was partially offset by lower loan impairment charges as a result of 
lower specific allowances for commercial customers.

Commenting on the results, Paulo Maia, President and Chief Executive Officer 
of HSBC Bank Canada, said:

"While broadly unchanged from the fourth quarter of 2013, our profit before 
tax in the first quarter of 2014 is solid at C$233m. I am encouraged to see 
more customers and prospects taking fuller advantage of the unparalleled 
global network HSBC offers. Other positive signs of momentum include increased 
commercial financing activity and strong growth in wealth management. As a 
priority growth market for HSBC, we will continue to invest and grow the 
business to help our customers fulfil their dreams and ambitions through our 
connections to international markets and businesses."

Analysis of Consolidated Financial Results for the First Quarter of 2014

Net interest income for the first quarter of 2014 was C$307m, a decrease of 
C$29m, or 9%, compared with the first quarter of 2013 and a decrease of C$9m, 
or 3%, compared with the fourth quarter of 2013. Net interest income decreased 
compared with the same quarter last year primarily due to declining loan 
balances of the run-off consumer finance portfolio as well as a decline in 
personal lending balances. Net interest income in the prior quarter benefitted 
from the recovery of interest income on impaired loans that was not repeated 
in the first quarter of 2014. Further contributing to the decrease of net 
interest income compared with the prior quarter was declining loan balances of 
the run-off consumer finance portfolio.

Net fee income for the first quarter of 2014 was C$155m, an increase of C$9m, 
or 6%, compared with the first quarter of 2013 and an increase of C$4m, or 3%, 
compared with the fourth quarter of 2013. The increase in net fee income 
compared with both the same quarter last year and the prior quarter was 
primarily due to higher standby fees as well as higher fees from growth in 
funds under management.

Net trading income for the first quarter of 2014 was C$39m, a decrease of 
C$18m, or 32% compared with the first quarter of 2013, and an increase of 
C$5m, or 15%, compared with the fourth quarter of 2013. The decrease in net 
trading income compared with the same quarter last year was mainly due to 
lower customer spreads related to foreign exchange products and lower trading 
income generated by rates products. The increase in net trading income 
compared with the prior quarter was primarily due to trading gains in the 
hedging portfolios.

Net expense from financial instruments designated at fair value for the first 
quarter of 2014 was C$2m, marginally lower compared with the first quarter of 
2013 and unchanged compared with the fourth quarter of 2013.

Gains less losses from financial investments for the first quarter of 2014 
were C$19m, a decrease of C$16m, or 46%, compared with the first quarter of 
2013 and an increase of C$13m compared with the fourth quarter of 2013. The 
bank realizes gains and losses from financial investments from disposals of 
available-for-sale financial investments driven by balance sheet management 
activities. The variances from comparative periods are primarily as a result 
of the bank's continuing balance sheet management activities.

Other operating income for the first quarter of 2014 was C$14m, marginally 
higher compared with the first quarter of 2013, and a decrease of C$5m, or 
26%, compared with the fourth quarter of 2013. The decrease in other operating 
income compared with the prior quarter was primarily due to a reduction in 
global support activity resulting in lower income from other entities within 
the HSBC Group.

Loan impairment charges and other credit risk provisions for the first quarter 
of 2014 were C$26m, a decrease of C$30m and C$13m respectively compared with 
the first quarter and the fourth quarter of 2013. The decreases in loan 
impairment charges and other credit risk provisions compared with the first 
and fourth quarters last year are primarily as a result of lower specific 
allowances for commercial customers.

Total operating expenses for the first quarter of 2014 were C$276m, an 
increase of C$13m and C$6m respectively compared with the first quarter and 
the fourth quarter of 2013. The increase in total operating expenses compared 
with both the first and fourth quarters last year is primarily due to our 
continued investment in our Regulatory and Financial Crime Compliance 
function. The first and fourth quarters last year included a reduction of 
incentive compensation accruals of C$7m and C$4m respectively.

Share of profit in associates for the first quarter of 2014 was C$3m, 
marginally lower compared with the first quarter of 2013, and a decrease of 
C$14m compared with the fourth quarter of 2013. Share of profit in associates 
was higher in the fourth quarter due to an increase in value of the bank's 
investment in private equity funds.

Income tax expense. The effective tax rate in the first quarter of 2014 was 
26.5%, compared with 30.0% in the first quarter of 2013 and 21.8% in the 
fourth quarter of 2013. Income tax expense in the first quarter 2013 was 
higher due to an increase in the bank's tax provision relating to certain 
defined benefit pension assets resulting in a higher effective tax rate for 
the period. Income tax expense in the fourth quarter of 2013 included various 
decreases in estimates resulting in a lower effective tax rate for the period.

Movement in Financial Position

Total assets at 31 March 2014 were C$84.3bn, broadly unchanged from 31 
December 2013. Assets increased due to higher commercial customer lending 
which resulted in a C$1.5bn growth in loans and advances to customers as well 
as customers' liability under acceptances. Further contributing to the 
increase in assets was growth of C$1.6bn in reverse repurchase agreements. The 
increase in assets was broadly offset by a decline of C$2.2bn in financial 
investments driven by balance sheet management activities and C$0.8bn in 
trading positions of government and agency bonds.

Total liabilities at 31 March 2014 were C$79.2bn, broadly unchanged from 31 
December 2013. The increases of C$1.1bn in trading liabilities, C$0.8bn in 
acceptances as well as C$0.6bn in repurchase agreements were broadly offset by 
decreases of C$1.5bn in customer accounts and C$1.0bn in debt securities in 
issue. The growth in trading liabilities was primarily due to higher balances 
from pending trade settlements and higher holdings of short position 
securities. The growth in acceptances was primarily due to increased 
commercial customer lending activity using banker's acceptances. The decrease 
in customer accounts was primarily as a result of lower commercial account 
balances. The decrease in debt securities in issue was primarily due to the 
maturity of wholesale funding during the first quarter of 2014.

Business Performance in the First Quarter of 2014

Commercial Banking

Profit before income tax expense was C$149m for the first quarter of 2014, an 
increase of C$25m, or 20%, compared with the first quarter of 2013 and a 
decrease of C$11m, or 7%, compared with the fourth quarter of 2013. The 
increase in profit before income tax compared with the same quarter last year 
was primarily due to lower specific loan impairment charges and higher net 
interest income from growth in loan balances. In 2014 the HSBC Group adopted a 
revised methodology in allocating indirect expenses of support functions to 
the global lines of business which more accurately reflects the utilization of 
product support services. The increase in profit before income tax for the 
first quarter of 2014 compared with the same quarter last year was partially 
offset by higher total operating expenses primarily as a result of the 
adoption of the revised methodology. Profit before income tax expense in the 
fourth quarter of 2013 benefitted from an increase in value of the bank's 
investment in private equity funds and higher net interest income from the 
recovery of interest income on impaired loans that was not repeated in the 
first quarter of 2014. Further contributing to the decrease in profit before 
income tax expense compared with the fourth quarter of 2013 were higher 
allocated product support costs as a result of the adoption of the revised 
methodology, partially offset by lower specific loan impairment charges.

Global Banking and Markets

Profit before income tax expense was C$77m for the first quarter of 2014, a 
decrease of C$26m, or 25%, compared with the first quarter of 2013 and an 
increase of C$15m, or 24%, compared with the fourth quarter of 2013. Gains 
less losses from financial investments are realized as Balance Sheet 
Management continues to re-balance the portfolio for risk management purposes 
based on the low interest rate environment. The variances in profit before 
income tax compared with both the first and fourth quarters last year were 
primarily driven by the re-balancing of the financial investments portfolio. 
Also contributing to the decrease in profit before income tax expense compared 
with the same quarter last year were lower customer spreads related to foreign 
exchange products and lower trading income generated by rates products, 
notably in government instruments.

Retail Banking and Wealth Management

Profit before income tax expense for the first quarter of 2014 was C$15m, a 
decrease of C$33m, or 69%, compared with first quarter of 2013 and an increase 
of C$6m, or 67%, compared with the fourth quarter of 2013. Profit before 
income tax expense relating to ongoing business (excluding the run-off 
consumer finance portfolio) was C$9m, a decrease of C$9m, or 50%, compared 
with the first quarter of 2013 and an increase of C$10m compared with the 
fourth quarter of 2014. Profit before income taxes decreased compared with the 
same quarter last year primarily due to lower net interest income driven by a 
decline in personal lending balances and a decline in net interest spread in a 
competitive low interest rate environment. In 2014, the HSBC Group adopted a 
revised methodology in allocating indirect expenses of support functions to 
the global lines of business which more accurately reflects the utilization of 
product support services. The increase in profit before income tax expense 
compared with the fourth quarter of 2013 was primarily as a result of lower 
operating expenses following the adoption of the revised methodology.

Profit before income tax expense relating to the run-off consumer finance 
portfolio for the first quarter of 2014 was C$6m, a decrease of C$24m, or 80%, 
compared with the first quarter of 2013 and a decrease of C$4m, or 40%, 
compared with the fourth quarter of 2013. The decrease in profit before income 
tax expense relating to the run-off consumer finance portfolio was primarily 
due to lower interest income from declining loan balances, partially offset by 
lower collective provisions and lower operating expenses from right sizing of 
operations.

Other

Transactions which do not directly relate to our global lines of business are 
reported in 'Other'. The main items reported under 'Other' include income and 
expense from the impact of changes in credit spreads on our own subordinated 
debentures designated at fair value and income and expense related to 
information technology services provided to HSBC Group companies on an arm's 
length basis. Profit before income tax expense for the first quarter of 2014 
was a loss of C$8m, compared with a loss of C$6m for the first quarter of 
2013, and a profit of C$1m compared with the fourth quarter of 2013. The 
variances from comparative periods are primarily due to the impact of the 
items noted above.

Dividends

During the first quarter of 2014, the bank declared and paid C$80m in 
dividends on HSBC Bank Canada common shares, a decrease of C$10m from the same 
quarter in 2013.

Regular quarterly dividends of 31.875 cents per share have been declared on 
HSBC Bank Canada Class 1 Preferred Shares - Series C, 31.25 cents per share on 
Class 1 Preferred Shares - Series D and 41.25 cents per share on Class 1 
Preferred Shares - Series E. Dividends will be paid on 30 June 2014, for 
shareholders of record on 13 June 2014.

Use of non-IFRS financial measures

In measuring our performance, the financial measures that we use include those 
which have been derived from our reported results. However, these are not 
presented within the Financial Statements and are not defined under IFRS. 
These are considered non-IFRS financial measures and are unlikely to be 
comparable to similar measures presented by other companies. The following 
non-IFRS financial measures are used throughout this document and their 
purposes and definitions are discussed below:

Financial position at period end

These measures are indicators of the stability of the bank's balance sheet and 
the degree funds are deployed to fund assets.

Ratio of customer advances to customer accounts is calculated by dividing 
loans and advances to customers by customer accounts using period-end balances.

Average total shareholders' equity to average total assets is calculated by 
dividing average total shareholders' equity (determined using month-end 
balances during the period) with average total assets (determined using 
month-end balances during the period).

Credit coverage ratios

Credit coverage ratios are useful to management as a measure of the extent of 
incurred loan impairment charges relative to the bank's performance and size 
of its customer loan portfolio during the period.

Loan impairment charges to total operating income is calculated as loan 
impairment charges and other credit provisions, as a percentage of total 
operating income for the period.

Loan impairment charges to average gross customer advances is calculated as 
annualized loan impairment charges and other credit provisions for the period, 
as a percentage of average gross customer advances (determined using month-end 
balances during the period).

Total impairment allowances to impaired loans at period-end are useful to 
management to evaluate the coverage of impairment allowances relative to 
impaired loans using period-end balances.

Return ratios

Return ratios are useful for management to evaluate profitability on equity, 
assets and risk-weighted assets.

Return on average common equity is calculated as annualized profit 
attributable to common shareholders for the period, divided by average common 
equity (determined using month-end balances during the period).

Post-tax return on average total assets is calculated as annualized profit 
attributable to common shareholders for the period, divided by average assets 
(determined using average month-end balances during the period).

Pre-tax return on average risk-weighted assets is calculated as annualized 
profit attributable to common shareholders for the period, divided by average 
risk-weighted assets (determined using quarter-end balances during the period).

Efficiency ratios

Efficiency ratios are measures of the bank's efficiency in managing its 
operating expense to generate revenue.

Cost efficiency ratio is calculated as total operating expenses for the period 
as a percentage of total operating income for the period.

Adjusted cost efficiency ratio is calculated similar to the cost efficiency 
ratio; however, total operating income for the period excludes gains and 
losses from financial instruments designated at fair value, as the movement in 
value of the bank's own subordinated debt issues are primarily driven by 
changes in market rates and are not under the control of management.

Revenue mix ratio

This measure demonstrates the contribution of each of the primary revenue 
streams to total operating income.

Net interest income, net fee income and net trading income to total operating 
income is calculated as net interest income, net fee income and net trading 
income for the period divided by total operating income for the period.

About HSBC Bank Canada

HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading 
international bank in Canada. The HSBC Group serves customers worldwide from 
over 6,300 offices in over 75 countries and territories in Europe, Asia, North 
and Latin America, and the Middle East and North Africa. With assets of 
US$2,758bn at 31 March 2014, HSBC is one of the world's largest banking and 
financial services organizations.

Copies of HSBC Bank Canada's first quarter 2014 interim report will be sent to 
shareholders in May 2014.
    HSBC Bank Canada                                                Summary
                                                         Quarter ended
                                          31 March   31 March   31 December
                                              2014       2013          2013
    Financial performance for the period                                   
    (C$m)
      Total operating income                   532        584           524
      Profit before income tax expense         233        269           232
      Profit attributable to common            160        171           164
      shareholders
      Basic earnings per common share         0.32       0.34          0.33
      (C$)
                                                                           
    Financial position at period-end                                       
    (C$m)
      Loan and advances to customers1       41,208     42,012        40,524
      Customer accounts1                    49,456     47,068        50,926
      Ratio of customer advances to           83.3       89.3          79.6
      customer accounts2
      Shareholders' equity                   4,969      5,218         4,885
      Average total shareholders' equity       5.8        6.2           6.0
      to average total assets2
                                                                           
    Capital measures                                                       
      Common equity tier 1 capital ratio      10.8       11.1          11.0
      (%)
      Tier 1 ratio (%)                        12.9       13.9          13.2
      Total capital ratio (%)                 14.5       15.9          15.0
      Assets-to-capital multiple              15.3       14.1          15.1
      Risk-weighted assets (C$m)            38,466     36,171        36,862
                                                                           
    Performance ratios (%)2                                                
      Credit coverage ratios (%)                                           
        Loan impairment charges to total       4.9        9.6           7.4
        operating income
        Loan impairment charges to             0.3        0.5           0.4
        average gross customer advances3
        Total impairment allowances to        62.0       50.4          66.4
        impaired loans at period-end3
                                                                           
      Return ratios (%)                                                    
        Return on average common              15.0       16.3          15.2
        shareholders' equity
        Post-tax return on average total      0.76       0.83          0.76
        assets
        Pre-tax return on average              2.5        3.0           2.5
        risk-weighted assets3
                                                                           
      Efficiency and revenue mix ratios                                    
      (%)
        Cost efficiency ratio                 51.9       45.0          51.5
        Adjusted cost efficiency ratio        51.7       44.8          51.3
        Net interest income to total          57.7       57.5          60.3
        operating income
        Net fee income to total operating     29.1       25.0          28.8
        income
        Net trading income to total            7.3        9.8           6.5
        operating income
    1  From 1 January 2014, non-trading reverse repurchase and repurchase
       agreements are presented as separate lines in the balance sheet.
       Previously, non-trading reverse repurchase agreements were included
       within 'Loans and advances to banks' and 'Loans and advances to
       customers' and non-trading repurchase agreements were included
       within 'Deposits by banks' and 'Customer accounts'.  Comparative
       data have been restated accordingly. More information relating to
       the change in presentation will be made available in our first
       quarter 2014 interim report.
        
    2  Refer to the 'Use of non-IFRS financial measures' section of this
       document for a discussion of non-IFRS financial measures.
        
    3  The measure has been aligned with that in use by the HSBC Group and
       comparative information has been restated. Refer to the 'Use of
       non-IFRS financial measures' section of this document for a
       description of the method in use to calculate the measure.
    HSBC Bank Canada              Consolidated Income Statement (Unaudited)
    Figures in C$m                                     Quarter ended
    (except per share amounts)    31 March   31 March           31 December
                                      2014       2013                  2013
                                                                           
    Interest income                    483        517                   503
    Interest expense                 (176)      (181)                 (187)
    Net interest income                307        336                   316
                                                                           
    Fee income                         172        166                   173
    Fee expense                       (17)       (20)                  (22)
    Net fee income                     155        146                   151
                                                                           
    Trading income excluding net        36         47                    24
    interest income
    Net interest income on               3         10                    10
    trading activities
    Net trading income                  39         57                    34
    Net expense from financial         (2)        (3)                   (2)
    instruments designated at
    fair value
    Gains less losses from              19         35                     6
    financial investments
    Other operating income              14         13                    19
    Total operating income             532        584                   524
    Loan impairment charges and       (26)       (56)                  (39)
    other credit risk provisions
    Net operating income               506        528                   485
    Employee compensation and        (159)      (156)                 (146)
    benefits
    General and administrative       (104)       (95)                 (112)
    expenses
    Depreciation of property,          (8)        (9)                   (9)
    plant and equipment
    Amortization and impairment        (5)        (3)                   (3)
    of intangible assets
    Total operating expenses         (276)      (263)                 (270)
    Operating profit                   230        265                   215
    Share of profit in associates        3          4                    17
    Profit before income tax           233        269                   232
    expense
    Income tax expense                (61)       (80)                  (50)
    Profit for the period              172        189                   182
                                                                           
    Profit attributable to common      160        171                   164
    shareholders
    Profit attributable to               9         15                    16
    preferred shareholders
    Profit attributable to             169        186                   180
    shareholders
    Profit attributable to               3          3                     2
    non-controlling interests
    Average number of common       498,668    498,668               498,668
    shares outstanding (000's)
    Basic earnings per common         0.32       0.34                  0.33
    share
    HSBC Bank Canada                 Consolidated Balance Sheet (Unaudited)
    Figures in C$m               At 31 March   At 31 March   At 31 December
                                        2014          2013             2013
                                                                           
    ASSETS                                                                 
                                                                           
    Cash and balances at central          71            62              165
    bank
    Items in the course of               104           135              107
    collection from other banks
    Trading assets                     5,962         6,975            6,728
    Derivatives                        2,121         1,918            2,112
    Loans and advances to banks1       1,188           837            1,149
    Loans and advances to             41,208        42,012           40,524
    customers1
    Reverse repurchase                 7,748         5,896            6,161
    agreements - non-trading1
    Financial investments             19,570        19,972           21,814
    Other assets                         368         1,049              332
    Prepayments and accrued              213           227              206
    income
    Customers' liability under         5,578         5,092            4,757
    acceptances
    Property, plant and                  134           138              137
    equipment
    Goodwill and intangibles              66            71               68
    assets
    Total assets                      84,331        84,384           84,260
                                                                           
    LIABILITIES AND EQUITY                                                 
                                                                           
    Liabilities                                                            
    Deposits by banks1                   645         1,228              635
    Customer accounts1                49,456        47,068           50,926
    Repurchase agreements -            2,037         2,119            1,487
    non-trading1
    Items in the course of               124            69               53
    transmission to other banks
    Trading liabilities                5,471         4,027            4,396
    Financial liabilities                430           438              428
    designated at fair value
    Derivatives                        1,859         1,438            1,746
    Debt securities in issue          10,320        13,720           11,348
    Other liabilities                  2,203         2,587            2,338
    Acceptances                        5,578         5,092            4,757
    Accruals and deferred income         516           516              551
    Retirement benefit                   284           308              271
    liabilities
    Subordinated liabilities             239           326              239
    Total liabilities                 79,162        78,936           79,175
                                                                           
    Equity                                                                 
    Common shares                      1,225         1,225            1,225
    Preferred shares                     600           946              600
    Other reserves                       149           276              134
    Retained earnings                  2,995         2,771            2,926
    Total shareholders' equity         4,969         5,218            4,885
    Non-controlling interests            200           230              200
    Total equity                       5,169         5,448            5,085
    Total equity and liabilities      84,331        84,384           84,260
    1   From 1 January 2014, non-trading reverse repurchase and repurchase
        agreements are presented as separate lines in the balance sheet.
        Previously, non-trading reverse repurchase agreements were included
        within 'Loans and advances to banks' and 'Loans and advances to
        customers' and non-trading repurchase agreements were included
        within 'Deposits by banks' and 'Customer accounts'.  Comparative
        data have been restated accordingly. More information relating to
        the change in presentation will be made available in our first
        quarter 2014 interim report.
    HSBC Bank Canada          Condensed Consolidated Statement of Cash
                              Flows (Unaudited)
    Figures in C$m                                Quarter ended
                              31 March   31 March          31 December
                                  2014       2013                 2013
                                                                      
    Net cash from/(used in):                                          
      - Operating activities   (1,841)        887                (508)
      - Investing activities     2,245        426                (652)
      - Financing activities      (92)      (108)                (612)
    Net increase/(decrease)        312      1,205              (1,772)
    in cash and cash
    equivalents
    Cash and cash equivalents    1,896      1,753                3,668
    at the beginning of the
    period
    Cash and cash equivalents    2,208      2,958                1,896
    at the end of the period
                                                                      
    Represented by:                                                   
      - Cash and balances at        71         62                  165
      central bank
      - Items in the course       (20)         66                   54
      of transmission from/
      (to) other banks, net
      - Loans and advances to    1,188        837                1,149
      banks of one month or
      less
      - Reverse repurchase         810      1,905                  333
      agreements with banks
      of one month or less
      - Treasury bills and         159         88                  195
      certificates of
      deposits of three
      months or less
    Cash and cash equivalents    2,208      2,958                1,896
    at the end of the period
    HSBC Bank Canada               Global Business Segmentation (Unaudited)
    Figures in C$m                                     Quarter ended
                                   31 March   31 March          31 December
                                       2014       2013                 2013
    Commercial Banking                                                     
    Net interest income                 168        161                  173
    Net fee income                       79         77                   82
    Net trading income                    6          8                    6
    Other operating income                6          3                    6
                                                          
    Total operating income              259        249                  267
    Loan impairment charges and        (12)       (39)                 (29)
    other credit risk provisions
    Net operating income                247        210                  238
    Total operating expenses          (101)       (90)                 (95)
                                                          
    Operating profit                    146        120                  143
    Share of profit in associates         3          4                   17
                                                          
    Profit before income tax            149        124                  160
    expense
                                                                           
    Global Banking and Markets                                             
    Net interest income                  44         42                   40
    Net fee income                       24         18                   23
    Net trading income                   21         37                   17
    Gains less losses from               19         33                    6
    financial investments
    Other operating income                -          -                    1
                                                          
    Total operating income              108        130                   87
    Loan impairment                     (1)          2                    1
    (charges)/reversals and other
    credit risk provisions
                                                          
    Net operating income                107        132                   88
    Total operating expenses           (30)       (29)                 (26)
                                                          
    Profit before income tax             77        103                   62
    expense
                                                                           
    Retail Banking and Wealth                                              
    Management
    Net interest income                 102        141                  110
    Net fee income                       52         51                   46
    Net trading income                    5          4                    4
    Gains less losses from                -          2                    -
    financial investments
    Other operating income                2          3                    2
                                                          
    Total operating income              161        201                  162
    Loan impairment charges and        (13)       (19)                 (11)
    other credit risk provisions
                                                          
    Net operating income                148        182                  151
    Total operating expenses          (133)      (134)                (142)
                                                          
    Profit before income tax             15         48                    9
    expense
                                                                           
    Ongoing Retail Banking and            9         18                  (1)
    Wealth Management business
    Run-off consumer finance              6         30                   10
    portfolio
                                                                           
    Other                                                                  
    Net interest expense                (7)        (8)                  (7)
    Net trading income                    7          8                    7
    Net expense from financial          (2)        (3)                  (2)
    instruments designated at fair
    value
    Other operating income                6          7                   10
                                                          
    Total operating income                4          4                    8
    Total operating expenses           (12)       (10)                  (7)
                                                          
    Profit/(loss) before income         (8)        (6)                    1
    tax expense



SOURCE  HSBC Bank Canada 
Media enquiries to: Sharon Wilks 416-868-3878  Fabrice de Dongo 416-868-8282 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2014/07/c7043.html 
CO: HSBC Bank Canada
ST: British Columbia
NI: FIN ERN DIV  
-0- May/07/2014 08:15 GMT
 
 
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