HSBC Mex­ico 3Q earn­ings up

The Pak Banker - - Front Page -

MEX­ICO

HSBC Mex­ico is a sub­sidiary of Grupo Fi­nanciero HSBC, S.A. de C.V.’s and is sub­ject to su­per­vi­sion by the Mex­i­can Bank­ing and Se­cu­ri­ties Com­mis­sion. The bank is re­quired to file fi­nan­cial in­for­ma­tion on a quar­terly ba­sis (in this case for the quar­ter ended 30 Septem­ber 2012) and this in­for­ma­tion is pub­licly avail­able. Given that this in­for­ma­tion is avail­able in the pub­lic do­main, Grupo Fi­nanciero HSBC, S.A. de C.V. has elected to file this re­lease. HSBC Se­guros, S.A. de C.V. Grupo Fi­nanciero HSBC (HSBC Se­guros) is Grupo Fi­nanciero HSBC’s in­sur­ance group.

Net in­come be­fore tax for the nine months to 30 Septem­ber 2012 was MXN5,721m, an in­crease of MXN2,116m or 58.7% com­pared with MXN3,605m for the same pe­riod in 2011, mainly driven by re­duced ad­min­is­tra­tive and per­son­nel ex­penses re­lated to strict cost con­trol and cost sav­ings ini­tia­tives, lower loan im­pair­ment charges, and higher net in­ter­est in­come, par­tially off­set by lower other oper­at­ing in­come. Net in­come for the nine months to 30 Septem­ber 2012 was MXN4,413m, an in­crease of MXN1,693m or 62.2% com­pared with MXN2,720m for the same pe­riod in 2011.

To­tal oper­at­ing in­come, net of loan im­pair­ment charges, for the nine months to 30 Septem­ber 2012 was MXN21,999m, a de­crease of MXN362m or 1.6% com­pared with MXN22,361m for the same pe­riod in 2011, mainly due to one-off gains recog­nised in 2011 re­sult­ing from the sale and lease­back of cer­tain branches in the net­work and the sale of HSBC Afore, par­tially off­set by in­creased net in­ter­est in­come.

Loan im­pair­ment charges for the nine months to 30 Septem­ber 2012 were MXN4,259m, a de­crease of MXN491m or 10.3% com­pared with MXN4,750m for the same pe­riod in 2011 due to en­hanced pre-screening of new cus­tomers and an over­all im­prove­ment in as­set qual­ity. Ad­min­is­tra­tive and per­son­nel ex­penses were MXN16,313m, a de­crease of MXN2,478m or 13.2% com­pared with the same pe­riod in 2011. Ex­clud­ing the ef­fect of re­struc­tur­ing charges, which were MXN856m lower than those in­curred in the same pe­riod in 2011, the de­crease would have been MXN1,622m or 9.2% com­pared with the same pe­riod in 2011 as a re­sult of strict cost con­trol and cost re­duc­tion strate­gies im­ple­mented since 2011. The cost ef­fi­ciency ra­tio was 62.1% for the nine months to 30 Septem­ber 2012, com­pared with 69.3% for the same pe­riod in 2011.

Net loans and ad­vances to cus­tomers were MXN180.8bn at 30 Septem­ber 2012, an in­crease of MXN9.3bn or 5.4% com­pared with MXN171.5bn at 30 Septem­ber 2011. To­tal im­paired loans as a per­cent­age of gross loans and ad­vances im­proved to 2.0% com­pared with 3.6% at 30 Septem­ber 2011. The cov­er­age ra­tio (al­lowance for loan losses di­vided by im­paired loans) was 270.2% com­pared with 158.4% at 30 Septem­ber 2011.

At 30 Septem­ber 2012, de­posits were MXN286.6bn, an in­crease of MXN5.8bn or 2.1% com­pared with MXN280.7bn at 30 Septem­ber 2011.

Re­turn on eq­uity was 12.3% for the nine months to 30 Septem­ber 2012 com­pared with 7.4% for the same pe­riod in 2011. At 30 Septem­ber 2012, the bank’s cap­i­tal ad­e­quacy ra­tio was 14.4% and the tier 1 cap­i­tal ra­tio was 11.3% com­pared with 15.2% and 11.6% re­spec­tively at 30 Septem­ber 2011, and 15.3% and 11.7% re­spec­tively at 31 De­cem­ber 2011.

— PLUS NEWS

BEI­JING: A Chi­nese po­lice of­fi­cer checks the iden­tity card of a visi­tor on Tianan­men Square.

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