HSBC Bank Malaysia has posted a net income of MYR274 million for the third quarter of 2007, up 20.5% from MYR227 million in the same corresponding period the previous year, while profit before taxation for the same period totaled MYR308 million.
The group also reported a 75.8% rise in income from its Islamic banking operations for the three months ended March 31, 2007, to MYR55 million over MYR31 million in Q3 2006. This was driven by growth in Islamic financing, primarily in consumer credit, and improved profit margins.
Meanwhile, its total assets saw a 19.1% growth to MYR43.5 billion for the quarter, compared with MYR36.6 billion the previous year, attributable to the growth in customer deposits resulting from successful marketing campaigns.
The company stated that the higher net interest income was driven primarily by year-on-year growth in lending of MYR2 billion, or 9.1%, in higher margin products, including cards and consumer finance, as well as widening spreads.
Other operating income was up 23.3% to MYR203 million from MYR164 million in Q3 2006.
Zarir Cama, deputy chairman and CEO of HSBC Bank Malaysia, commented: The local banking sector remains highly competitive with both conventional and Islamic banks expanding their networks aggressively. However, HSBC Bank Malaysia Berhad is well-positioned in all growth areas, ranging from value-added consumer banking, financing and investment products to innovative financial solutions for corporates to capture new business opportunities. This is particularly the case in Islamic banking, which has great growth potential.