9th Nov 2006 10:00
HSBC Holdings PLC09 November 2006 The following text is the English translation of a news release issued inGermany by HSBC Holdings plc's subsidiary. HSBC TRINKAUS & BURKHARDT THIRD QUARTER 2006 RESULTS •Operating profit up 57.2 per cent to €137.4 million in the first nine months of 2006, matching the full year 2005 level. •Profit after tax up 13.2 per cent to €90.0 million. •Interest income increased by 20.9 per cent to €69.5 million during the first nine months of 2006. •Fees and commissions income grew by 8.9 per cent to €212.7 million. • Return on equity before tax of 28.8 per cent during the first three quarters, compared with 25.4 per cent for the same period last year. •Cost:income ratio improved to 61.8 per cent during the first nine months of 2006, compared with 63.7 per cent during the same period last year. HSBC Trinkaus & Burkhardt AG showed a significant increase in operating profit,growing by €50.0 million during the first nine months of 2006 and reaching 2005full year operating profit levels. Growth in profit after tax was moderate asthere were no significant one-off effects in the first nine months of 2006,compared to 2005. Profit after tax increased 13.2 per cent, to €90.0 millionfrom €79.5 million for the same period last year. Return on equity increased to28.8 per cent from 25.4 per cent in the corresponding period in 2005. Trading and Institutional Customers divisions showed strong improvement. TheInstitutional Customers division managed to further increase its revenuescompared to the previous year despite deteriorating market conditions during thesummer. The division contributed €45.0 million in operating profit, the highestcontribution of any segment. The strong contribution was primarily due to thehighly successful asset management business. During the first nine months of the year, corporate and commercial banking andprivate banking businesses were also able to significantly increase revenues.The increase in trading revenues was particularly strong due to the firm growthof the equities and equity derivatives business. Components of operating profit reflected an overall positive performance duringthe first three quarters of 2006. Interest income rose by 20.9 per cent to €69.5 million during the nine month period. Fee income, the most important performance indicator of the bank, showed anincrease of 8.9 per cent to €212.7 million. Fee income from foreign exchange andderivatives increased significantly. Fee income from structuring and issuancebusinesses also increased due to placement of a structured mezzanine issue formedium-sized businesses (H.E.A.T Mezzanine 2006). Trading profits recorded the biggest increase, growing by 69.8 per cent to €81.0 million from €47.7 million in the corresponding period last year. The highest share of trading profits came from equities and equity/index derivativesactivities, contributing €62.4 million, largely driven by the HSBC TrinkausInvestment Products proposition. Interest trading was able to increase profitsby 58.8 per cent to €12.7 million during the first nine months of 2006. Higher provisions for performance-related remuneration, increased costs forinformation technology and higher staff expenses due to increased staff levelsled to an increase in administrative expenses of 7.8 per cent to €229.5 million.The strong increase in revenues contributed to an improved cost:income ratio of61.8 per cent during the first three quarters of 2006, from 63.7 per cent forthe same period in 2005. The management board does not expect fourth quarter results to benefit fromextraordinary gains from disposals as it had in 2005. However, it does expectoperating profit for the full year to increase significantly based on continuedstable revenues. Since the change in HSBC Trinkaus & Burkhardt's legal structureto a stock corporation in July 2006, the board has intensified its successfulstrategy of combining the strengths of the customer-oriented private bank withthe HSBC Group's network and product capabilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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