HSBC Bank Canada third quarter 2007 results - highlights

* Net income attributable to common shares was C$145 million for the quarter ended 30 September 2007, an increase of 5.1 per cent over the quarter ended 30 September 2006.
* Net income attributable to common shares was C$419 million for the nine months ended 30 September 2007, an increase of 13.6 per cent over the same period in 2006.
* Return on average common equity was 21.3 per cent for both the quarter and nine months ended 30 September 2007 compared with 23.0 per cent and 21.2 per cent, respectively, for the same periods in 2006.
* The cost efficiency ratio was 48.9 per cent and 50.8 per cent for the quarter and nine months ended 30 September 2007 compared with 48.2 per cent and 51.3 per cent, respectively, for the same periods in 2006.
* Total assets were C$63.6 billion at 30 September 2007 compared with C$55.9 billion at 30 September 2006.
* Total funds under management were C$27.1 billion at 30 September 2007 compared with C$22.4 billion at 30 September 2006.

Results are prepared in accordance with Canadian generally accepted accounting principles.

Overview

HSBC Bank Canada recorded net income attributable to common shares of C$145 million for the quarter ended 30 September 2007, an increase of C$7 million, or 5.1 per cent, from C$138 million for the third quarter of 2006. Net income attributable to common shares for the nine months ended 30 September 2007 was C$419 million compared with C$369 million for the same period in 2006, an increase of C$50 million, or 13.6 per cent.

Net income attributable to common shares in the nine months ended 30 September 2007 benefited from gains of C$21 million after related income taxes, on the sale of the bank’s shares in the Montreal Exchange. Excluding these gains, net income attributable to common shares for the nine months ended 30 September 2007 increased by 7.9 per cent from the same period last year.

Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, said:
“HSBC Bank Canada recorded satisfactory results in the third quarter with good growth in revenue and net income compared to previous periods. The strong Canadian economy and strategic investments in key businesses and markets drove growth. The recent volatility in international credit and liquidity markets has provided evidence that we need to continue to manage our businesses prudently.

“For the remainder of 2007 and into 2008, we plan to continue our existing strategy of enhancing sales through careful expansion in key target markets and improving operational efficiencies while maintaining close control over credit quality. We continue to work on global initiatives with the HSBC Group and recently, along with 34 other countries and territories, we launched HSBC Global Premier, a product that offers the world’s mass affluent the most comprehensive global banking and wealth management service in the market. Global Premier leverages HSBC’s presence in 83 markets to provide customers with seamless international service.”