HSBC Bank Canada, the Vancouver-based subsidiary of UK-headquartered HSBC, has reported strong full year and fourth quarter figures. The financial organization recorded significant growth in profits over both terms, highlighted by a full year growth of 18%.
HSBC Bank Canada recorded net income of C$345 million for the year ended December 31, 2004, an increase of C$53 million, or 18.2%, from C$292 million for 2003. Net income for the quarter ended December 31, 2004 was C$86 million, an increase of C$15 million, or 21.1%, compared with C$71 million for the same period in 2003.
The company said net income in 2004 benefited from growth in the balance sheet, growth in funds under management, an improvement in the equity markets and a one-time change in accounting for mortgage loan prepayment fees. These were partially offset by higher salaries and benefits costs and other operating expenses due to increased business activities.
Commenting on the results, Lindsay Gordon, president and CEO, said: We are pleased with our results for the year. We have achieved our objectives for 2004 in that we grew revenues, controlled our costs and managed our capital efficiently. Revenue grew faster than costs, and resulted in a 100 basis point improvement in our cost:income ratio over 2003.
We achieved this in an extremely competitive interest rate environment, which negatively impacted spreads throughout 2004. It was encouraging to see increased growth in our non-interest revenue during 2004, which shows the better balance of our operations.