For the twelve months ended December 31, 2016, HSBC Bank Canada reports total operating income of $2.07 billion, up from $2.03 billion in the same period a year earlier. It also reports profit before income tax expense of $715 million compared to $617 million the previous year.
In its release, the bank attributes the increase to favourable trading performance and favourable changes to the market value of counterparty credit risk on derivative contracts. Further, the bank cites lower loan impairment charges, primarily in the oil and gas sector.
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When it comes to retail banking and wealth management, the bank says in its release that the business unit has “continued to achieve sustainable and balanced growth in residential mortgages and deposits, and [it] benefited from increases in wealth balances during the first half of the year.”
It adds the business continues to deliver even though “spread compression in the highly competitive low interest rate environment is impacting margins.”
HSBC Bank Canada is a subsidiary of HSBC Holdings, which reported a US$3.4 billion loss in Q4, far short of expectations for a profit. Shares of HSBC Holdings fell more than 7% on Tuesday.