HSBC Bank Canada second-quarter profit up 7.3 per cent to $191 million

VANCOUVER – Canada’s largest foreign-owned bank, HSBC Bank Canada, reported Friday its second-quarter profit attributable to common shareholders rose 7.3 per cent to $191 million on lower loan impairment charges and higher fee income.

“Once again we focused on building on our global capabilities through the HSBC Group to meet our customer needs, and maintaining strong capital and liquidity levels,” president and CEO Lindsay Gordon said in a statement.

The bank’s return on average common equity was down slightly from a year earlier at 21.3 per cent versus 21.6 per cent. Total assets were $81.5 billion at the end of the quarter compared to $79.1 billion at the same point in 2010. Total assets under administration increased to $32.3 billion from $29.4 billion.

Loan impairment charges and other credit risk provisions fell 56.9 per cent to $31 million.

Overall profits for the quarter were $208 million, up four per cent from $200 million in the same period a year earlier.

Net interest income for the period was $390 million down from $410 million in the same period a year earlier on lower loan volumes, the bank said, “resulting from reduced commercial borrowings and consumer finance receivables, and spread compression on deposits resulting from competitive pressures.”

Net fee income for the quarter was $162 million compared with $158 million a year earlier, while net trading income dropped to $36 million from $61 million a year earlier when the bank accounted for a $21 million recovery of previously recorded losses related to asset-backed commercial paper.

HSBC Bank Canada, is a subsidiary of London-based HSBC Holdings PLC with more than 260 offices, including more than 140 bank branches in Canada.