8th Nov 2007 10:00
HSBC Holdings PLC08 November 2007 The following text is the English translation of a news release issued inGermany by HSBC Trinkaus & Burkhardt, a 78.6 per cent indirectly owned subsidiary of HSBC Holdings plc. HSBC TRINKAUS & BURKHARDT AG THIRD QUARTER 2007 RESULTS • Operating profit up 18.3 per cent in the first nine months of 2007 to €162.6 million, compared with the same period in 2006. • Profit after tax up 24.0 per cent in the first nine months of 2007 to €111.6 million versus the first nine months of 2006. • Return on equity before tax of 26.5 per cent during the first nine months of 2007, compared with 24.7 per cent for the same period last year. HSBC Trinkaus & Burkhardt AG showed strong results in the first nine months ofthe year as all business segments exceeded comparable 2006 results. Operatingprofit during the nine month period was up 18.3 per cent period on period to€162.6 million. Profit after tax increased by 24.0 per cent compared with thefirst nine months of 2006 to €111.6 million. Trading profit remained at a highlevel despite the volatility in the capital markets. Net interest income and feeincome were the greatest contributors to earnings. Net interest income rose significantly during the first three quarters, by 24.4per cent to €83.6 million versus the comparable period in 2006. This wasprimarily due to an increase in customer deposits which funded higher loans andadvances to banks and increased loans and advances to customers. Interest incomefrom financial assets, including investment income, remains at a high level. Net fee income increased 14.2 per cent to €242.9 million compared to the previous year. This was due primarily to higher volumes in the securities business despite a slight slowdown in recent months. The issuing and structuring business also made a contribution to this growth. Trading profit again improved, by 4.1 per cent to €84.3 million in the firstthree quarters compared with the same period in 2006, despite an extremely highstarting base during the last two years. Volatility in capital markets in thethird quarter resulted in the weakest earnings contribution from trading profitcompared to the two preceding quarters in 2007. Equities and equity/indexderivatives remain the strongest earnings component. Net credit for loan impairment of €3.7 million was primarily attributable to thereversal of individually assessed impairments and a reduction in collectivelyassessed impairments. Credit risk provisioning continues to remain cautious andcharacterised by strong valuation standards. Total administrative expenses increased 14.2 per cent compared with the firstnine months of 2006. This was due to both an increase in the number of employeesand higher performance-related remuneration. Other administrative expensesincreased due to higher fees for consultancy services in IT projects for thefurther modernisation of IT infrastructure. The cost efficiency ratio remained unchanged at 61.8 per cent compared with thecomparable nine month period in the previous year. The Management Board is aiming to increase operating profit for the full yearcompared with 2006. HSBC Trinkaus' business model and strategy joins up itstraditional full range of personalised service and local expertise with the HSBCGroup's worldwide network. To reinforce its strategy and distinctive image inthe German market, HSBC Trinkaus will today introduce a new HSBC-branded logocampaign. Notes to editors: 1. HSBC Trinkaus & Burkhardt AGHSBC Trinkaus is one of the leading private banks in Germany and part of theglobally-operating HSBC Group. In addition to the head office in Dusseldorf,HSBC Trinkaus is represented in six locations in Germany with over 1,800employees and has access to the global network of the HSBC Group. With totalassets of €21.8 billion* and €86.3 billion in funds under management andadministration*, the bank has a Fitch IBCA rating of AA-. The core target groupsare private clients, corporate clients and institutional clients. *(figures asat 30 September 2007) Copies of all the bank's news releases can be found on the homepagewww.hsbctrinkaus.de. 2. Notes to the consolidated profit and loss account and the consolidated balance sheetThe Interim Report for the HSBC Trinkaus & Burkhardt Group as at 30 September2007 was drawn up in accordance with International Financial Reporting Standards(IFRS) as they are to be applied in the European Union. The interim reportingrequirements as set out in IAS 34 are fulfilled in particular. Furthermore, thereport takes into consideration the requirement of an interim managementstatement pursuant to Section 37x German Securities Trading Act (WpHG). Noreview of the Interim Report was carried out by externalauditors. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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