Bank of Montreal and Scotiabank kicked off a week of rosy results on Tuesday with quarterly results. The National Bank of Canada exceeded expectations by reporting that its earnings per share in the first quarter rose by more than 20 percent year-on-year, boosted by growth in its business.
HSBC Bank Canada (TSE: HSB) posted its strongest growth on Wednesday and the bank said an economic recovery due to the introduction of the coronavirus vaccine will boost performance this year, while BMO executives also said US customers will benefit from a faster vaccine compared to Canada.
The bank reported a profit of $201 million for the three months to September 30, up 37.7 per cent from $146 million in the third quarter of 2010, the bank said.
Profit attributable to shareholders was $182 million, or $0.36 per share, up from $1.1 billion a year earlier. The Company reported a net gain of $22 million from the sale of financial instruments referred to as fair value, compared to a loss of $3 million a year earlier and a loss from the purchase of a financial instrument. Net income of just under one dollar. The $1 billion was the result of the $2.8 billion loan impairment charge that the bank recorded as a result of the company’s third quarter financial results.
Analysts said on today’s conference call that the bank slipped into a quarterly loss for the first time in more than a decade. HSBC now forecasts a net loss of $1.5 billion for the third quarter of 2021, up from $2.1 billion a year earlier.
The bank is in the midst of a three-year restructuring program designed to cut costs and improve profitability. HSBC resumed its program of 35,000 redundancies in June and has already cut 3,800 staff, including outside firms, since the start of the year.
In the third quarter, risk provisions rose to $7.64 billion, with total provisions for the year expected to be $9.5 billion, an increase of $1.2 billion from a year earlier. The bank reported a net loss of 1.4 billion euros in the fourth quarter, up from 2.3 billion dollars in the same period a year ago and 3.6 billion dollars a year ago. Q2A after the UK Prudential Regulation Authority (PRA) forced a dividend cut last year HSBC said in Q3A that it hoped to pay a dividend before it releases its full-year figures. [Sources: 2]
TD reported adjusted net income of $1.1 billion, compared with $0.2 billion a year ago and $2.5 billion in the same period a decade ago. CIBC posted a net loss of $1 billion in the third quarter, compared with a loss of $1 million a year earlier, due to a loss on the execution of offset loans, but an increase in adjusted profit to $3.58 per share, compared with an estimate of $2.81 per share. TD reported an adjusted profit of EUR 2 million, an increase of 3% compared to the third quarter of 2017. [Sources: 1]
HSBC Bank Canada posted a net loss of $1.1 billion in the first quarter of 2019, compared with $0.2 billion a year ago and $2.5 billion in the same period a decade ago. A person walks past the HSBC Bank of Canada headquarters in New York City, U.S., October 16, 2017. [Sources: 1, 6]
Operating income from global banking and markets was impacted by unfavorable credit, financing and valuation movements, which were only partially offset by strong trading and sales activities. However, the central bank’s interest rate cuts in March, in connection with COVID-19 and the fall in oil prices, had a negative impact on operating profit and expected credit losses in the first quarter. [Sources: 6]
Global banking and markets leaders have been moved to Asia as the bank moves resources from Hong Kong to its new global headquarters in London, London and New York as part of its global strategy. [Sources: 3]
Asian investment banks weakened in the first quarter of 2021, but the British investment bank flourished, and its $351 million profit became the second-largest quarterly profit by the bank in its history. In Hong Kong, HSBC Bank Canada’s earnings per share fell 23% in the first quarter, and in New York, second-quarter earnings fell 11%. [Sources: 3]
HSBC Canada reported a profit of $20 million in financial investments, compared with zero in the third quarter of 2010 and $1.5 million in the second quarter of 2019.
Net operating income increased 15.9 percent to $611 million from $521 million in the third quarter of 2018, primarily due to an increase in fee revenue. Net interest income fell 3.2 percent, or $391 million, in part due to lower interest rates and higher interest costs. He said net trading income also rose 43.8 per cent year-on-year to about $46 million as trading volume was boosted by volatile world markets.
HSBC Holdings Group and HSBC Group have merged to form Wealth & Personal Banking, and we are renaming them WPB.
