HSBC Bank Malaysia Berhad Results to 30 Sept 2008

7th Nov 2008 14:00



7 November 2008

HSBC BANK MALAYSIA BERHAD

CONSOLIDATED RESULTS FOR THE NINE MONTHS ENDED 

30 SEPTEMBER 2008 - HIGHLIGHTS

 

Commentary

Pre-tax profit grew MYR159 million in the first nine months of 2008, an increase of 22.2 per cent on the same period in 2007. Profit before allowance for losses on loans and financing increased by 12.7 per cent to MYR1,066 million in the period under review, compared with MYR946 million in 2007, mainly attributable to higher other operating income. Allowance for losses on loans and financing at MYR187 million for the nine months ended 30 September 2008 was 17.5 per cent lower as loan quality improved compared to the same period in 2007 when higher impairment allowances were made for corporate lending portfolios. 

Net interest income for the nine months ended 30 September 2008 grew by 4.2 per cent or MYR35 million, to MYR863 million (nine months to 30 September 2007: MYR828 million). This was principally driven by an increase in lending, (up MYR2.7 billion or 10.0 per cent to MYR29.7 billion at 30 September 2008 from MYR27.0 billion at 30 September 2007), mainly in trade financing products, offset by tighter margins.

Other operating income for the nine months ended 30 September 2008 increased to MYR763 million, up 16.7 per cent or MYR109 million compared to the corresponding period in 2007. This was mainly a result of the increase in trading profits of MYR92 million recorded for the nine months ended 30 September 2008 as the Malaysian ringgit remained volatile against other major currencies, resulting in higher hedging activities by corporate customers. Other operating income for the nine months ended 30 September 2008 was further boosted by an increase of MYR39 million recorded from the disposal of securities, moderated by a decrease of MYR19 million in fees income as agency fees income declined.

Other operating expenses for the first nine months of 2008 increased by 5.3 per cent, or MYR38 million, to MYR748 million compared with the same period in 2007 (MYR710 million) mainly due to higher personnel costs (up MYR28 million or 7.7 per cent) as the workforce increased to support the growth in business. 

The cost efficiency ratio for the nine months ended 30 September 2008 improved to 41.2 per cent from 42.9 per cent in the same period last year as a result of stronger growth in all major income streams while other operating expenses grew at a slower pace. 

Total assets as at 30 September 2008 grew by MYR6.5 billion or 13.6 per cent against 31 December 2007. The increase in assets was achieved primarily from higher net loans and advances, up MYR3.7 billion or 14.3 per cent compared to 31 December 2007. 

Irene Dorner, deputy chairman and CEO, commented: "HSBC Bank Malaysia Berhad ("HSBC Bank") continues to record growth in all major income streams and profits remain robust. The positive results reflect the confidence customers have in the HSBC brand. As one of the leading foreign banks in Malaysia, HSBC Bank always aims to deliver first class banking and financial services to our customers, and will continue to do so in these trying times. 

"Liquidity in the local banking sector remains sufficient but future income growth could be affected by the expected decrease in domestic consumption and the possible dampening of demand for credit due to the weakening global economic environment. Despite the waning growth of global economies and the significant stress on global credit markets, the local banking sector remains resilient. While the Malaysian economy will not be insulated from the global economic turmoil, its economic fundamentals are sound and are expected to remain so. 

"HSBC Bank intends to capitalise on the growth in Islamic banking in the region as Islamic financing has remained largely positive despite the current global credit crisis. HSBC Bank will build on the impending launch of HSBC Amanah's branches in Malaysia in the fourth quarter of 2008 and increase its market penetration in Islamic banking."

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Media enquiries to Elizabeth Wee on +603 22 703 351 or at [email protected]

  

UNAUDITED CONDENSED BALANCE SHEETS AS AT 30 SEPTEMBER 2008
			Group				Bank
Figures in MYR'000s			30 Sep 2008		31 Dec 2007		30 Sep 2008		31 Dec 2007
Assets
Cash and short term funds			14,064,598		11,321,351		11,982,991		11,321,351
Securities purchased under resale agreements			2,733,018		1,858,579		2,733,018		1,858,579
Deposits and placements with
banks and other  financial institutions			1,485,841		1,448,953		2,428,976		1,448,953
Securities held-for-trading			1,152,122		1,236,193		1,152,122		1,236,193
Securities available-for-sale			2,313,095		4,272,517		1,766,016		4,272,517
Loans, advances and financing			29,728,834		26,007,124		26,745,166		26,007,124
Other assets			2,071,497		897,653		2,060,901		897,653
Statutory deposits with Central Bank Malaysia			709,648		704,847		587,248		704,847
Investment in subsidiaries			-		-		660,021		21
Prepaid land lease payments			19,767		20,890		19,767		20,890
Property, plant and equipment			256,855		258,290		256,499		258,290
Intangible assets			51,339		41,869		51,252		41,869
Deferred tax assets			97,183		69,675		81,409		69,675
Total assets			54,683,797		48,137,941		50,525,386		48,137,962
Liabilities
Deposits from customers			42,817,886		36,314,839		38,727,024		36,314,860
Deposits and placements of
banks and other  financial institutions			4,109,022		4,441,901		4,106,929		4,441,901
Bills and acceptances payable			381,816		627,730		381,816		627,730
Other liabilities			2,303,807		1,815,550		2,251,685		1,815,550
Recourse obligation on loans  sold to Cagamas Berhad			715,983		759,101		715,983		759,101
Provision for taxation			52,688		57,569		49,081		57,569
Subordinated bonds			991,658		1,000,000		991,658		1,000,000
Total liabilities			51,372,860		45,016,690		47,224,176		45,016,711
Shareholders' funds
Share capital			114,500		114,500		114,500		114,500
Reserves			3,196,437		2,756,751		3,186,710		2,756,751
Proposed dividend			-		250,000		-		250,000
Shareholders' funds			3,310,937		3,121,251		3,301,210		3,121,251
Total liabilities and shareholders  funds			54,683,797		48,137,941		50,525,386		48,137,962
Commitments and contingencies			88,820,005		76,966,309		87,057,072		76,966,309

Note: The 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.

  

UNAUDITED CONDENSED INCOME STATEMENT
FOR THE FINANCIAL QUARTER/PERIOD ENDED 30 SEPTEMBER 2008
			Group
			3rd quarter ended				Year-To-Date ended
Figures in MYR'000s			30 Sep 2008		30 Sep 2007		30 Sep 2008		30 Sep 2007
Revenue			880,767		813,351		2,658,365		2,405,400
Interest income			558,233		504,056		1,610,165		1,486,275
Interest expense			(265,565)		(227,716)		(747,180)		(657,989)
Net interest income			292,668		276,340		862,985		828,286
Other operating income			216,847		220,394		763,162		653,891
Income from Islamic banking operations			67,096		59,903		187,688		173,851
Operating income			576,611		556,637		1,813,835		1,656,028
Other operating expenses			(265,281)		(249,533)		(747,957)		(710,214)
Profit before allowance			311,330		307,104		1,065,878		945,814
Allowance for losses on  losses and financing			(78,014)		(80,631)		(186,726)		(226,312)
Profit before taxation			233,316		226,473		879,152		719,502
Taxation			(62,612)		(68,055)		(227,045)		(204,333)
Profit attributable to shareholders			170,704		158,418		652,107		515,169
Earnings per MYR0.50  ordinary share
-basic/diluted			74.5 sen		69.2 sen		284.7 sen		225.0 sen
Dividends per MYR0.50  ordinary share (net)
- paid in respect of prior year			-		-		109.2 sen		109.2 sen
- interim dividend paid			65.5 sen		87.3 sen		65.5 sen		87.3 sen

Note: The 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.

  

UNAUDITED CONDENSED INCOME STATEMENT
FOR THE FINANCIAL QUARTER/PERIOD ENDED 30 SEPTEMBER 2008
			Bank
			3rd quarter ended				Year-To-Date ended
Figures in MYR'000s			30 Sep 2008		30 Sep 2007		30 Sep 2008		30 Sep 2007
Revenue			846,267		813,351		2,623,865		2,405,400
Interest income			561,710		504,056		1,613,642		1,486,275
Interest expense			(265,565)		(227,716)		(747,180)		(657,989)
Net interest income			296,145		276,340		866,462		828,286
Other operating income			223,103		220,394		769,418		653,891
Income from Islamic banking operations			37,407		59,903		157,999		173,851
Operating income			556,655		556,637		1,793,879		1,656,028
Other operating expenses			(261,100)		(249,533)		(743,776)		(710,214)
Profit before allowance			295,555		307,104		1,050,103		945,814
Allowance for losses on loans and financing			(75,455)		(80,631)		(184,167)		(226,312)
Profit before taxation			220,100		226,473		865,936		719,502
Taxation			(58,968)		(68,055)		(223,401)		(204,333)
Profit attributable to shareholders			161,132		158,418		642,535		515,169
Earnings per MYR0.50 ordinary share
- basic/diluted			70.4 sen		69.2 sen		280.6 sen		225.0 sen
Dividends per MYR0.50  ordinary share (net)
- paid in respect of prior year			-		-		109.2 sen		109.2 sen
- interim dividend paid			65.5 sen		87.3 sen		65.5 sen		87.3 sen

Note: The 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.

 

ENDMSCBXBDBBUGGGIR

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