17th Aug 2006 14:00
HSBC Holdings PLC17 August 2006 The following text is the English translation of a news release issued inGermany by HSBC Holdings plc's subsidiary. HSBC TRINKAUS & BURKHARDT DOUBLES OPERATING PROFIT IN THE FIRST HALF OF 2006 • Operating profit in the first half of 2006 increased 110.7 per cent to EUR104.3 million from EUR49.5 million in the first half of 2005. • Profit after tax in the first half of 2006 increased 72.0 per cent to EUR70.7 million from EUR41.1 million in the first half of 2005. • Cost:income ratio fell to 58.3 per cent at the end of the first half of 2006 from 68.6 per cent at the same point in 2005. HSBC Trinkaus & Burkhardt more than doubled operating profit in the first halfof 2006 to EUR104.3 million. Profit after tax increased by 72.0 per cent fromEUR41.1 million to EUR70.7 million. Return on equity at the end of June 2006 was33.9 per cent, up from 19.1 per cent at the same point last year. Across all client segments, strong growth was recorded in asset managementactivities. Meanwhile, Corporate Banking improved its revenues, largely throughincreased customer appetite for interest rate products. The bank's InstitutionalClients and Private Banking units profited from higher transaction volumes inequities. Net interest income rose by 30.8 per cent to EUR46.3 million. Declining interestincome from financial assets was more than compensated for by, amongst otherthings, higher revenues from the securities services joint venture -International Transaction Services GmbH (ITS). Fee income increased significantly, rising by 22.4 per cent to EUR151.2 million.Growth in fee income from securities business was moderate due largely to therecent decline in stock prices, however, fee income from derivatives and foreignexchange business grew strongly. Encouragingly, trading profit rose to EUR62.5 million in the first half of 2006from EUR27.3 million in the same period last year. All trading segmentscontributed to this increase, but equities and equity-/index-derivatives stoodout contributing EUR49.2 million. Administrative expenses rose by 15.3 per cent to EUR156.0 million, largely dueto an increase in personnel expenses which were up 22.0 per cent to EUR105.1million. This was due to an increase in performance-related remuneration.Provisions for pensions were lower than last year, as pension obligations weremoved to a Contractual Trust Arrangement (CTA). Depreciation decreased due tothe sale of the securities execution system GEOS to the affiliated company ITS.The overall effect of these measures and the strong business performance was adecrease in the cost:income ratio from 68.6 per cent to 58.3 per cent at the endof the first half 2006. The management board is encouraged by these results but stock markets haveweakened since May this year, which is likely to affect some business in thesecond half. Nevertheless, the management board continues to pursue its goal ofincreasing operating profit for the full year, over the results posted for 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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