HSBC Bank Malaysia Q1 2014

 

HSBC BANK MALAYSIA BERHAD

RESULTS FOR THE FINANCIAL PERIOD ENDED

31 MARCH 2014 - HIGHLIGHTS

 

·    Profit before tax for the three months ended 31 March 2014 was MYR395m, an increase of MYR14m or 3.6% compared with the same period in 2013. The higher profit was due to lower loan impairment charges, partly offset by a decrease in operating income and higher operating expenses.

 

·     Loan impairment charges decreased by MYR61m or 73.2% compared with the same period in 2013 due to lower collective impairment provisions as a result of improvements in asset quality and lower individual impairment charges on corporates.

 

·     Operating expenses increased by MYR35m or 13.1% compared with the same period in 2013, mainly due to higher IT and general administrative expenses.

 

·    Operating income before loan impairment charges reduced to MYR724m, a decrease of MYR12m or 1.6% compared with the three months ended 31 March 2013. The decline was mainly due to a decrease in net trading income, partly offset by an increase in net interest income.

 

·    Cost efficiency ratio for the three months ended 31 March 2014 deteriorated to 42.3% from 36.8% in the same period in 2013 due to higher operating expenses.

 

·    Balance sheet footings at 31 March 2014 grew by MYR1.8bn to MYR81.6bn, mainly due to higher deposits from both financial institutions and customers, which were deployed in to financial assets held-for-trading and financial investments available-for-sale.

 

·    Tier 1 capital ratio and total capital ratio remain strong at 11.4% and 14.0% respectively at 31 March 2014 (31 December 2013: 11.3% and 13.8% respectively).

 

 

The interim financial statements of HSBC Bank Malaysia Berhad have been prepared in accordance with the applicable approved accounting standards issued by the Malaysian Accounting Standards Board.

 

Notes to editors:

1. HSBC in Malaysia

HSBC Bank Malaysia Berhad was locally incorporated in 1984 and is a wholly-owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited (a company under the HSBC Group).  In 2007, HSBC Bank Malaysia Berhad was the first locally incorporated foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia, and HSBC Amanah Malaysia Berhad, a full-fledged Islamic bank wholly owned by HSBC Bank Malaysia Berhad, commenced operations in August 2008.  HSBC in Malaysia has a network of 68 branches nationwide, of which 26 are HSBC Amanah Malaysia Berhad branches.  In 2006, HSBC was the first foreign bank to be awarded a Takaful (Islamic insurance) license in Malaysia. HSBC Amanah Takaful (Malaysia) Sdn Bhd, a joint venture between HSBC Insurance (Asia Pacific) Holdings Limited (49% shareholding), Jerneh Asia Berhad (31% shareholding) and Employees Provident Fund Board of Malaysia (20% shareholding) commenced operations in August 2006.

 

2. The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which 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, the HSBC Group is one of the world's largest banking and financial services organisations.

 

 

 

Unaudited Condensed Statements of Financial Position at 31 March 2014

 

	Group			Bank
Figures in MYR '000s	31 Mar 2014	31 Dec 2013		31 Mar 2014	31 Dec 2013
Assets
Cash and short-term funds	14,045,429	15,454,507		11,000,049	12,558,786
Securities purchased under resale agreements	3,406,054	2,877,270		3,406,054	2,877,270
Deposits and placements with   banks and other financial institutions	4,951,699	4,011,340		5,881,373	5,203,425
Financial assets held-for-trading	3,992,520	2,333,390		3,953,375	2,243,731
Financial investments available-for-sale	7,642,767	6,499,601		5,962,720	5,158,595
Loans, advances and financing	43,159,477	44,659,904		33,830,285	35,484,730
Derivative financial assets	1,083,937	1,320,144		1,215,121	1,413,325
Other assets	1,601,616	761,686		1,649,723	738,904
Statutory deposits with Central Bank	1,252,860	1,384,160		857,798	993,598
Investments in subsidiary companies	-	-		660,021	660,021
Property and equipment	347,759	355,047		327,078	332,254
Intangible assets	56,705	55,352		56,697	55,343
Tax recoverable	3,041	14,472		-	-
Deferred tax assets	102,822	86,976		96,910	79,883
Total assets	81,646,686	79,813,849		68,897,204	67,799,865
Liabilities
Deposits from customers	60,842,605	59,914,419		49,461,214	48,883,876
Deposits and placements of banks and other financial institutions	9,319,640	8,297,828		9,083,903	8,270,879
Bills and acceptances payable	457,457	906,595		443,171	895,623
Derivative financial liabilities	934,358	1,098,453		999,867	1,160,067
Other liabilities	1,804,880	1,636,295		1,679,311	1,646,543
Provision for taxation	11,755	16,055		11,755	16,055
Multi-Currency Sukuk Programme	500,000	500,000		-	-
Subordinated bonds	1,004,942	1,005,071		1,004,942	1,005,071
Total liabilities	74,875,637	73,374,716		62,684,163	61,878,114
Equity
Share capital	114,500	114,500		114,500	114,500
Reserves	6,356,549	6,024,633		5,798,541	5,507,251
Proposed dividend	300,000	300,000		300,000	300,000
Total equity attributable to shareholder  of the Bank	6,771,049	6,439,133		6,213,041	5,921,751
Total liabilities and equity	81,646,686	79,813,849		68,897,204	67,799,865
Commitments and contingencies	144,946,775	140,001,374		143,442,343	138,108,215

 

 

 

Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income

For The Financial Period Ended 31 March 2014

 

			Group				Bank
			31 Mar 2014		31 Mar 2013		31 Mar 2014		31 Mar 2013
Figures in MYR'000s
Revenue			1,000,278		1,024,215		853,348		885,989
Interest income			577,836		568,175		585,219		577,678
Interest expense			(211,373)		(227,322)		(211,373)		(227,322)
Net interest income			366,463		340,853		373,846		350,356
Fee and commission income			118,199		113,736		118,199		113,736
Fee and commission expense			(6,152)		(10,648)		(6,152)		(10,648)
Net fee and commission income			112,047		103,088		112,047		103,088
Net trading income			113,919		150,828		109,911		150,113
Income from Islamic banking operations			124,143		127,371		-		-
Other operating income			7,361		13,527		40,019		44,462
Operating income before impairment losses			723,933		735,667		635,823		648,019
Loans / financing impairment charges and other credit   risk provisions			(22,377)		(83,408)		(7,629)		(51,306)
Net operating income			701,556		652,259		628,194		596,713
Other operating expenses			(306,513)		(271,033)		(282,926)		(251,258)
Profit before income tax expense			395,043		381,226		345,268		345,455
Income tax expense			(100,276)		(97,316)		(88,498)		(88,427)
Profit for the period			294,767		283,910		256,770		257,028
Other comprehensive income/(expense)
Items that will subsequently be reclassified to profit or loss when specific conditions are met
Cash flow hedge:
	Effective portion of changes in fair value		1		(12)		1		(12)
	Net amount transferred to profit or loss		(64)		(96)		(64)		(96)
Available-for-sale reserves:
	Change in fair value		13,654		5,423		10,319		4,090
	Amount transferred to profit or loss		453		(7,631)		453		(7,631)
Income tax (expense)/credit relating to components of   other comprehensive income			(3,511)		579		(2,677)		912
Other comprehensive income/(expense) for the   period, net of income tax			10,533		(1,737)		8,032		(2,737)
Total comprehensive income for the period			305,300		282,173		264,802		254,291
Profit attributable to the owner of the Bank			294,767		283,910		256,770		257,028
Total comprehensive income attributable to the owner   of the Bank			305,300		282,173		264,802		254,291
Basic earnings per MYR0.50 ordinary share			128.7 sen		124.0 sen		112.1 sen		112.2 sen

 

ends/all