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Company HSBC Holdings PLC
TIDM HSBA
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HSBC Bank Malaysia results

Released 08:30 12-Dec-2012
Number 3370T08

RNS Number : 3370T
HSBC Holdings PLC
12 December 2012
 



 

 

HSBC BANK MALAYSIA BERHAD

RESULTS FOR THE FINANCIAL PERIOD ENDED

30 SEPTEMBER 2012 - HIGHLIGHTS

 

·    Profit before tax for the nine months ended 30 September 2012 was MYR1,193m, an increase of MYR187m or 18.6% compared with the same period in 2011.

 

·    Operating income grew to MYR2,267m, an increase of MYR187m or 9.0% compared with the same period in 2011. This was mainly due to higher income from Islamic banking operations of MYR425m, an increase of MYR113m or 36.3% and higher net interest income of MYR958m, an increase of MYR80m or 9.2%.

 

·     Loan impairment charges and other credit risk provisions increased marginally by MYR6m or 3.3% for the nine months ended 30 September 2012 compared with the same period in 2011.

 

·    Cost efficiency ratio for the nine months ended 30 September 2012 improved to 39.7% from 43.3% for the same period in 2011.

 

·    Total assets of MYR77.6bn at 30 September 2012 decreased from MYR79.9bn at 31 December 2011 (30 September 2011: MYR73.0bn).

 

·    Core capital ratio and risk-weighted capital ratio remain strong at 9.4% and 12.9% respectively at 30 September 2012, higher than the 9.1% and 12.7% reported at 31 December 2011.

 

 

The financial statements of HSBC Bank Malaysia Berhad have been prepared in accordance with the applicable approved accounting standards issued by the Malaysian Accounting Standards Board.

 

 

 

Commentary

Mukhtar Hussain, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia Berhad ('the Bank'), commented: "We recorded a strong increase of MYR187m, or 18.6%, in profit before tax for the first nine months of 2012 by continuing to expand our Malaysian business, and the prudent management of overheads, which created organic growth across all business lines.

 

"Malaysia's GDP growth for 2012 continues to be spurred by robust domestic and private consumption, effectively mitigating against negative spillovers from weaknesses in the external environment. The government's efforts through the Economic Transformation Programme (ETP) as well as the Government Transformation Programme (GTP) have contributed to sustainable economic growth within the country.

 

"We continue to remain optimistic about the Bank's prospects in Malaysia and are committed to investing and contributing positively towards the economic and financial development of the country."

 

Financial commentary

HSBC Bank Malaysia Berhad reported profit before tax of MYR1,193m in the first nine months of 2012, an increase of 18.6% or MYR187m compared with the same period in 2011.

 

Operating income grew to MYR2,267m, an increase of MYR187m or 9.0% compared with the same period last year. This was mainly due to higher income from Islamic banking operations of MYR425m (up MYR113m or 36.3%), higher net interest income of MYR958m (up MYR80m or 9.2%), higher net fee income of MYR365m (an increase of MYR9m or 2.6%), offset by lower trading profits of MYR490m, down MYR24m or 4.8%.

 

The robust growth rate in income from Islamic Banking Operations was driven by strong growth in net financing income (at MYR323m, up MYR58m or 22.0%) and Islamic trading profits (at MYR45m, up MYR33m or 258.4%). The strong momentum and interest in Islamic Banking in the local and international financial industry, coupled with the Bank's investments in domestic network coverage supported the expansion of Islamic income. Net interest income grew because the size of the average loan and financing base increased and net fee income improved from increased corporate finance related fees.

 

Loan impairment charges and other credit risk provisions remain stable with only a marginal increase of MYR6m or 3.3% for the nine months ended 30 September 2012 compared to the same period last year. The increase was mainly due to higher provisions for net collective loan impairments (up MYR21m) and individual loan impairments (up MYR28m) on the expansion in gross loans, advances and financing. The higher provisions were partly offset by reduced levels of written-off impaired loans and financing (down MYR22m). Operating expenses were relatively unchanged at MYR899m (30 September 2011: MYR900m).

 

Gross loans, advances and financing at 30 September 2012 increased by MYR2.9bn to MYR43.2bn (31 December 2011: MYR40.3bn). Total assets at 30 September 2012 were MYR77.6bn, MYR2.3bn lower compared with MYR79.9bn at 31 December 2011. The decrease was due mainly to lower deposits and placements from banks and financial institutions (30 September 2012: MYR7.2bn; 31 December 2011: MYR9.9bn).

 

Media enquiries to Marlene Kaur at +603 2075 3351 or

marlenekaur@hsbc.com.my

 

 

Notes to editors:

 

1. HSBC in Malaysia

HSBC Bank Malaysia Berhad was locally incorporated in 1984 and is a wholly owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited (a member of the HSBC Group). In 2006, HSBC was the first foreign bank to be awarded a Takaful (Islamic insurance) license in Malaysia. HSBC Amanah Takaful (Malaysia) Sdn Bhd, a joint venture between HSBC Insurance (Asia-Pacific) Holdings Limited (49% shareholding), Jerneh Asia Berhad (31% shareholding) and Employees Provident Fund Board of Malaysia (20% shareholding), commenced operations in August 2006. In 2007, HSBC Bank Malaysia Berhad was the first locally incorporated foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia, and HSBC Amanah Malaysia, a fully fledged Islamic bank wholly owned by HSBC Bank Malaysia, commenced operations in August 2008. As at 30 September 2012, HSBC in Malaysia has a network of 64 branches nationwide, of which 22 are Islamic finance branches.

 

 

2. The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which serves customers worldwide from around 6,900 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. With assets of US$2,721bn at 30 September 2012, the HSBC Group is one of the world's largest banking and financial services organisations.

 

 

Unaudited Condensed Statements of Financial Position at 30 September 2012

 

Figures in MYR '000s

 Group




 30 Sep 2012

 

 31 Dec 2011

Restated

 1 Jan 2011

Restated

Assets 





Cash and short term funds

          11,702,846

        21,603,227

    11,815,604

Securities purchased under resale agreements

            2,682,796

          3,682,969

      6,467,863

Deposits and placements with banks





and other financial institutions

            5,007,705

             651,778

         330,981

Financial Assets Held-for-Trading

            4,491,320

          6,217,237

      4,895,060

Financial Investments Available-for-Sale

            6,100,336

          4,873,818

      3,400,090

Loans, advances and financing

          42,291,871

        39,417,305

    34,293,889

Other assets


            3,369,703

          1,754,521

      1,937,341

Statutory deposits with Central Bank

            1,336,660

          1,096,060

         221,827

Property and equipment

               341,538

             354,032

         318,481

Intangible assets


                  52,894

               53,263

           60,621

Deferred tax assets

               217,093

               220,907

         294,806







Total assets


          77,594,762

        79,925,117

    64,036,563







Liabilities





Deposits from customers

          59,519,142

        58,737,097

    48,492,474

Deposits and placements from banks





and other financial institutions

            7,153,163

          9,908,962

      6,853,048

Bills and acceptances payable

               433,573

             521,337

         429,229

Other liabilities


            3,833,610

          4,546,590

      2,247,500

Recourse obligation on loans sold to National Mortgage

  Corporation

                             -

                         -

         374,991

Provision for taxation

               240,955

               199,566

         251,677

Subordinated bonds

            1,014,753

          1,015,200

      1,003,039







Total liabilities


          72,195,196

        74,928,752

    59,651,958







Equity





Share capital


               114,500

             114,500

         114,500

Reserves


            5,285,066

          4,581,865

      4,020,105

Proposed dividend

               -

             300,000

         250,000







Total equity attributable to owner of the Bank

            5,399,566

          4,996,365

      4,384,605







Total liabilities and equity

          77,594,762

        79,925,117

    64,036,563













Commitments and Contingencies

       134,543,640

      118,976,559

    87,355,828

 

  

Comparative figures for 31 Dec 2011 and 1 Jan 2011 have been restated/reclassified to conform to current year's presentation upon the adoption of the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012


 

Unaudited Condensed Statements of Financial Position at 30 September 2012

 

Figures in MYR '000s

 Bank




 30 Sep 2012

 

 31 Dec 2011

Restated

 1 Jan 2011

Restated

Assets 





Cash and short term funds

10,057,585

        20,292,272

    10,658,860

Securities purchased under resale agreements

            2,682,796

          3,682,969

      6,467,863

Deposits and placements with banks





and other financial institutions

            7,117,398

          3,687,058

      1,471,815

Financial Assets Held-for-Trading

            4,230,140

          6,000,521

      4,747,054

Financial Investments Available-for-Sale

            5,169,293

          4,451,732

      3,069,425

Loans, advances and financing

          33,219,224

        31,642,441

    29,483,746

Other assets


            3,360,199

          1,734,637

      1,895,128

Statutory deposits with Central Bank

               988,598

             867,498

         187,098

Investments in subsidiary companies

               660,021

             660,021

         660,021

Property and equipment

               319,648

             335,106

         302,056

Intangible assets


                  52,778

               52,802

           59,122

Deferred tax assets

               179,309

             191,284

         262,423







Total assets


          68,036,989

        73,598,341

    59,264,611







Liabilities





Deposits from customers

          50,773,947

        53,074,622

    44,561,936

Deposits and placements from banks





and other financial institutions

            7,124,594

          9,429,554

      6,261,536

Bills and acceptances payable

                  420,648

              513,737

         423,698

Other liabilities


            3,453,332

          4,631,878

      2,173,082

Recourse obligation on loans sold to National Mortgage

  Corporation

                              -

                          -

         374,991

Provision for taxation

                  192,648

              168,318

         225,616

Subordinated bonds

            1,014,753

          1,015,200

      1,003,039







Total liabilities


          62,979,922

        68,833,309

    55,023,898







Equity





Share capital


               114,500

             114,500

         114,500

Reserves


               4,942,567

          4,350,532

      3,876,213

Proposed dividend

                  -

             300,000

         250,000







Total equity attributable to owner of the Bank

            5,057,067

          4,765,032

      4,240,713







Total liabilities and equity

          68,036,989

        73,598,341

    59,264,611













Commitments and Contingencies

       132,874,163

      116,742,039

    85,680,212

 

 

Comparative figures for 31 Dec 2011 and 1 Jan 2011 have been restated/reclassified to conform to current year's presentation upon the adoption of the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012.

 

 

Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income

 


Group


3rd quarter ended


Year-To-Date ended

Figures in MYR'000s

 30 Sept 2012

 

 30 Sept 2011

Restated


 30 Sept 2012

 

 30 Sept 2011

Restated

Revenue


1,057,405

1,010,318


3,161,098

2,920,331









Interest income


555,191

556,800


1,694,313

1,632,245

Interest expense

(242,045)

(268,781)


(736,740)

(755,000)

Net interest income

313,146

288,019


957,573

877,245







Fee and commission income

124,968

123,230


387,278

370,953

Fee and commission expense

(9,092)

(3,041)


(22,113)

(15,075)

Net fee and commission income

115,876

120,189


365,165

355,878







Net trading income

167,485

188,235


490,409

514,907

Income from Islamic Banking

152,489

110,966


425,269

311,952

Other operating income

11,130

4,707


28,467

20,075

Operating income before impairment losses

760,126

712,116


2,266,883

2,080,057









Loan / financing impairment charges and

  other credit risk provisions

(63,078)

(36,732)


(175,066)

(169,517)

Impairment losses on intangible assets

-

-


-

(4,900)

Net operating income

697,048

675,384


2,091,817

1,905,640








Other operating expenses


(278,986)

(295,524)


(899,113)

(900,282)

Profit before income tax expense

418,062

379,860


1,192,704

1,005,358








Income tax expense

(97,068)

(104,878)


(293,070)

(262,893)

Profit for the period

320,994

274,982


899,634

742,465







Other comprehensive income






Cash flow hedge






  Effective portion of changes in fair value

(129)

862


(257)

907

  Net amount transferred to profit and loss

(104)

-


(300)

-

Fair value reserve






  Change in fair value

(6,731)

4,399


530

2,702

  Amount transferred to profit or loss

-

(20)


-

(1,431)

Income tax relating to components of other

  comprehensive income

1,750

(1,321)


16

(544)

Other comprehensive income for the

  period, net of income tax

(5,214)

3,920


(11)

1,634







Total comprehensive income for the period

315,780

278,902


899,623

744,099







Profit attributable to owner of the Bank

320,994

274,982


899,634

742,465

Total comprehensive income attributable to

  owner of the Bank

315,780

278,902


899,623

744,099







Basic earnings per MYR0.50 ordinary share

140.2 sen

120.1 sen


392.9 sen

324.2 sen

Dividends per MYR0.50 ordinary share (net)






- final dividend paid in respect of prior year

-

-


131.0 sen

109.2 sen

- interim dividend paid

87.3 sen

87.3 sen


87.3 sen

87.3 sen

more

Comparative figures for 30 Sept 2011 have been restated/reclassified to conform to current year's presentation upon the adoption of the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012.

 

 

Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income

 


Bank


3rd quarter ended


Year-To-Date ended

Figures in MYR'000s

 30 Sept 2012

 

 30 Sept 2011

Restated


 30 Sept 2012

 

 30 Sept 2011

Restated

Revenue


901,201

909,262


2,728,740

2,645,725









Interest income


572,456

570,383


1,742,183

1,667,447

Interest expense

(242,045)

(268,781)


(736,740)

(755,000)

Net interest income

330,411

301,602


1,005,443

912,447







Fee and commission income

124,968

123,230


387,278

370,953

Fee and commission expense

(9,092)

(3,041)


(22,113)

(15,075)

Net fee and commission income

115,876

120,189


365,165

355,878







Net trading income

165,078

188,235


489,985

514,907

Other operating income

38,699

27,414


109,294

92,418

Operating income before impairment losses

650,064

637,440


1,969,887

1,875,650









Loan / financing impairment charges and

  other credit risk provisions

(30,433)

(4,888)


(80,956)

(93,445)

Impairment losses on intangible assets

-

-


-

(4,900)

Net operating income

619,631

632,552


1,888,931

1,777,305








Other operating expenses


(252,918)

(276,823)


(827,492)

(854,312)

Profit before income tax expense

366,713

355,729


1,061,439

922,993








Income tax expense

(89,156)

(99,194)


(267,433)

(246,065)

Profit for the period

277,557

256,535


794,006

676,928







Other comprehensive income






Cash flow hedge






  Effective portion of changes in fair value

(129)

862


(257)

907

  Net amount transferred to profit and loss

(104)

-


(300)

-

Fair value reserve






  Change in fair value

(5,981)

3,997


795

2,486

  Amount transferred to profit or loss

-

(20)


-

(1,431)

Income tax relating to components of other

  comprehensive income

1,554

(1,221)


(59)

(490)

Other comprehensive income for the

  period, net of income tax

(4,660)

3,618


179

1,472







Total comprehensive income for the period

272,897

260,153


794,185

678,400







Profit attributable to owner of the Bank

277,557

256,535


794,006

676,928

Total comprehensive income attributable to

  owner of the Bank

272,897

260,153


794,185

678,400







Basic earnings per MYR0.50 ordinary share

121.2 sen

112.0 sen


346.7 sen

295.6 sen

Dividends per MYR0.50 ordinary share (net)






- final dividend paid in respect of prior year

-

-


131.0 sen

109.2 sen

- interim dividend paid

87.3 sen

87.3 sen


87.3 sen

87.3 sen

ends/all

 

Comparative figures for 30 Sept 2011 have been restated/reclassified to conform to current year's presentation upon the adoption of the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January 2012.


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HSBC Bank Malaysia results - RNS