HSBC Bank Canada, a subsidiary of HSBC Holdings, has recorded net income attributable to common shares for the three months ended 30 June 2009 of C$114 million, a decrease of C$44 million, or 27.8% compared to C$158 million in the same quarter in 2008. Compared to the C$85 million achieved in the first quarter of 2009, however, net income attributable to common shares for the three months ended 30 June 2009 increased by C$29 million, or 34.1%.
Net interest income for the second quarter of 2009 was C$368 million, compared with C$423 million for the same quarter in 2008, a decrease of C$55 million, or 13% . Average interest earning assets decreased 3.3% from C$63.7 billion to C$61.6 billion. In addition, there was a decrease in net interest margin to 2.40% in the quarter compared with 2.67% in the same quarter of 2008.
Lindsay Gordon, president and CEO of HSBC Bank Canada, said: “The net interest margin improved thanks to a more stable interest rate environment. This, together with encouraging increases in debt and equity capital markets activity, and lower loan loss provisions, contributed to an overall improvement in our results between the first and second quarters.”
“Our capital ratios were enhanced by a successful preferred share offering at the beginning of the second quarter and we intend to maintain our traditional financial strength, with appropriate focus on risk management,” he added.
