More loans lift HSBC unit
Growth in commercial loans and fee income derived from asset-securitisation activities has pushed up after-tax profits at HSBC's Canadian banking unit by 13 per cent in the year to December 31.
The bank reported an after-tax profit of C$606 million (about HK$3.11 billion), compared with the $493 million for the year to October, 31, 1997.
The differences in bases of comparison is a result of a change in the bank's financial year end.
It said it had derived considerable new businesses following previously proposed consolidations of the Canadian financial services industry and by the acquisition of National Westminster Bank of Canada in May.
During the 14 months under review $2.2 billion in assets were securitised.
The bank made an additional bad-debt provision of $32 million as it increased its general provisions level to 125 basis points of its risk-adjusted assets.
Besides this increase, the organic 12 per cent growth in loans called for a further $10 million to be made as general provisions.
HSBC will announce its group results on February 22.