Marine Midland profit up 54pc

HSBC Holdings' US-based subsidiary Marine Midland Bank has reported a 54.9 per cent increase in first-quarter profit to US$52.6 million, despite incurring a $5 million loss in its trading revenue.

The trading result was not unexpected as Citibank also reported a drastic decline in its trading revenue, by $386 million to $71 million, in its first-quarter result.

Other areas in Marine Midland showed reasonable growth. The increase in net income of 54.9 per cent, from $33.9 million in the first quarter of last year, was due primarily to improved net interest income and other revenues, offset partially by higher taxes.

Net interest income improved by an increase in total interest income and decrease in interest expenses.

Total interest income rose 5.3 per cent to $277 million. Interest expense declined 11.8 per cent to $90 million.

Other operating expenses were also controlled, showing a slight fall of 3.3 per cent to $177 million.

No provision expenses were recorded for the quarter.

The $54 million loss in its mortgage-servicing expense showed a turnaround to make a profit of $4.5 million.

Marine Midland, with $17.5 billion in assets, is a New York state regional banking institution.