4th Apr 2008 10:00
HSBC Holdings PLC04 April 2008 The following text is the English version of a news release issued in Germany byHSBC Trinkaus & Burkhardt, a 78.6 per cent indirectly owned subsidiary of HSBCHoldings plc. HSBC TRINKAUS DELIVERS RECORD RESULTS IN 2007 • Operating revenue up 12.6 per cent to €535.9 million• Operating profit up 12.9 per cent to €206.0 million• 9.7 per cent increase in net income before tax to €207.8 million HSBC Trinkaus delivered record results in 2007 despite increasingly challengingmarket conditions. Operating revenue increased 12.6 per cent to €535.9 millionwhile operating profit rose 12.9 per cent to €206.0 million. Return on equitywas 24.2 per cent before tax. All business segments contributed to the bank's success with increasedprofitability in private banking, corporate banking and the institutionalclients business as well as proprietary trading. In 2008 the Management Boardwill seek to maintain and build on the increased profits delivered last year, while acknowledging that net fees, commissions and trading profit depend largely on the performance of the capital markets. Results by business segment: Net interest income increased 24.2 per cent to €110 million as average lendingand deposit volumes grew significantly due to the acquisition of new clients andstrengthening of existing business relationships. Credit risk provisioningcontinued to reflect a cautious credit appetite. Net fees and commissions rose by 12.9 per cent to €318.1 million and was themost important contributor to operating revenue, accounting for 59.4 per cent oftotal operating income. Despite continuing financial market uncertainties, the securities business also reported an increase in fees and commissions of €21.6 million to a total of €203.7 million. Trading profit was down 3.8 per cent to €100.1 million against 2006. The bankhad particular success in marketing retail products under the HSBC TrinkausRetail Derivatives brand and reached a new milestone in 2007 with the issue ofmore than 23,000 certificates and warrants. Administrative expenses increased by 11.7 per cent overall to €333.4 million.Personnel expenses increased by 7.2 per cent to €203.3 million as the bankrecruited to meet the demands of a growing business and increased levels ofperformance-related pay. Other administrative expenses increased by 20.5 percent mainly as a result of higher fees for consultancy services related to IT.The implementation of MiFID, SEPA and Basel II in 2007 led to specific increasesin IT and administrative costs. Despite a decline in net income from investments, the bank suffered no notablewrite-downs as a result of the subprime crisis and HSBC Trinkaus has nosignificant exposure to synthetic credit risk. Net income before tax grew by 9.7per cent to €207.8 million. The Annual General Meeting on 17 June 2008 willpropose the distribution of a dividend of €2.50 as was also the case last year. Consolidated assets increased 12.8 per cent in 2007 to €21.1 billion. Loans andadvances to customers increased 34.7 per cent to €4.3 billion. This growthlargely reflected expansion in the client base. At the end of the year thebank's total and core capital ratios were 10.7 per cent and 6.4 per centrespectively. Private banking again posted strong results in 2007 increasing to €42.2 million,the best performance in the bank's history. This was primarily the result ofincreasing net fees and commissions in the securities business, but was also dueto the bank's successful customer acquisition strategy. Assets under managementincreased to €26.4 billion, up 6.0 per cent on the previous year. Corporate banking also had a successful year. Despite strong competition for newbusiness it was able to achieve a 10.6 per cent increase in revenue to €46.1million while maintaining robust credit quality. Alongside the domestic earningscontribution, there was also a significant increase in business with Germancorporate clients from the wider HSBC Group. HSBC Trinkaus focussed significantly on investment banking during the course ofthe year and the bank is now one of Germany's leading facilitators of capitalmarket transactions. The fact that HSBC Trinkaus has been able to secure asignificant share of capital markets business in the domestic German renewableenergy market is evidence that it was right to place greater emphasis on thisarea of the business. 2007 was again a successful year for the institutional clients segment with anincrease of 5.0 per cent on 2006 to €59.1 million. Almost all product groupsproduced a satisfactory performance led by the asset management and equity business. By further stepping up cooperation with the HSBC Group, the bank was able to significantly expand its product range. Proprietary trading produced a record result of €64.5 million in 2007. Thisrepresents the single biggest earnings contribution of all business segments.Throughout the course of the year, more than 23,000 new leverage products,discount and bonus certificates were issued - an increase of more than 60 percent on 2006. The bank's subsidiary, HSBC Investments Deutschland, which manages institutionalassets and public funds, significantly increased revenues in both public andspecial funds. Internationale Kapitalanlagegesellschaft (INKA), another HSBC Trinkaussubsidiary, was able to achieve record growth figures in 2007 despite capitalmarkets conditions worsening in the second half of the year. Assets undermanagement increased by 11.4 per cent to €56.6 billion, a higher level of growththan the market as a whole. The number of funds increased from 286 to 295. Following discontinuation of the joint venture with the Telekom subsidiary'T-Systems' late last year, HSBC Trinkaus is now the sole shareholder ofInternational Transaction Services (ITS). As a result of strong stock marketactivity and increased trading volumes, ITS reached new highs in 2007 in termsof settlement volume: more than 66 million transactions were settledrepresenting an increase of 23.0 per cent versus 2006. The 100 per centacquisition of ITS is a clear signal of the bank's commitment to high-qualityservice in securities settlement. Note to editors: HSBC Trinkaus HSBC Trinkaus is one of the leading private banks in Germany and part of theglobally-operating HSBC Group. With over 1,800 employees HSBC Trinkaus can befound in six locations in Germany in addition to the head office in Dusseldorfand has access to the global network of the HSBC Group. With total assets of€21.1 billion* and €90.1 billion in funds under management and administration*,the bank has a Fitch IBCA rating of 'AA', the highest Fitch rating of all Germancommercial banks. The bank's central target groups are wealthy private clients,corporate clients and institutional clients. *(figures as at 31 December 2007) All HSBC Trinkaus press releases can be found on the Homepagewww.hsbctrinkaus.de under the heading "About us", "Press". HSBC Holdings plcHSBC Holdings plc serves over 128 million customers worldwide through around10,000 offices in 83 countries and territories in Europe, the Asia-Pacificregion, the Americas, the Middle East and Africa. With assets of some US$2,354billion at 31 December 2007, HSBC is one of the world's largest banking andfinancial services organisations. HSBC is marketed worldwide as 'The world'slocal bank'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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