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HSBC Bank Malaysia Berhad results for the three months ended 31 March 2007 - highlights
11 May 2007
- Profit before allowance for losses on loans and financing increased by 42.5 per cent to MYR316 million for the three months ended 31 March 2007 (MYR222 million for the same period in 2006).
- Profit before taxation of MYR308 million for the three months ended 31 March 2007 was 48.2 per cent higher than the MYR208 million reported for the same period in 2006.
- Cost efficiency ratio improved to 40.6 per cent from 47.6 per cent for the corresponding period in 2006.
- Net interest income for the three months ended 31 March 2007 up 20.5 per cent to MYR274 million (MYR227 million for the same period in 2006).
- Income from Islamic banking operations rose by 75.8 per cent for the three months ended 31 March 2007 to MYR55 million (MYR31 million in the same period last year).
- Total assets grew by MYR6.9 billion, or 19.1 per cent, to MYR43.5 billion at 31 March 2007 compared with MYR36.6 billion at 31 March 2006.
HSBC Bank Malaysia Berhad reported its highest ever quarterly result in the first quarter of 2007. This reflected improved performance across most of the bank's businesses, in particular in consumer and commercial banking. The bank's profit before tax of MYR308 million was 48.2 per cent higher than for the same period in 2006.
Higher net interest income was principally driven by year-on-year growth in lending of MYR2.0 billion, or 9.1 per cent, in higher margin products, including cards and consumer finance, as well as widening spreads.
Total assets grew by MYR6.9 billion, or 19.1 per cent, mainly attributable to the growth in customer deposits (up MYR5.6 billion or 19.9 per cent compared to 31 March 2006), primarily as a result of successful marketing campaigns.
Income from Islamic banking operations rose strongly, by 75.8 per cent, due to growth in Islamic financing, mainly in consumer credit, and improved profit margins.
Other operating income was up 23.3 per cent to MYR203 million from MYR164 million for the same period in 2006. This was mainly attributable to higher foreign exchange profits due to strengthening of the Malaysian ringgit and further liberalisation of the Central Bank's foreign exchange administrative rules which resulted in higher hedging activities by corporates.
Zarir J Cama, deputy chairman and CEO of HSBC Bank Malaysia Berhad, commented:
"This excellent performance reflects the success of the bank's strategy to create a broad base of income sources and a well-balanced loan portfolio with an even split between corporate and consumer credit.
"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.
"Besides exploring growth opportunities, the bank has embarked on a number of customer focused initiatives to reduce operational costs and improve customer service delivery with the goal of becoming the most preferred bank in Malaysia."
Media enquiries to Elizabeth Wee on +60 (3) 2270 3351.
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