Gains across all three business lines as customer activity and economic outlook lifts
HSBC cemented its position as a leading international bank operating in Canada with strong second quarter results.
The banking group posted increases in both revenue and profits before taxes as customer activity increased amid an improving outlook for the global economy.
Total operating income for the quarter was $547m, up $45m or 9.0% and $1,076m for the half-year, up $28m or 2.7%.
“Our results this quarter are the best since the third quarter of 2018 – with an improved economic outlook and the resilience of our customers leading to improved profits across all three business lines,” commented Linda Seymour, president and CEO of HSBC Canada.
She noted that the increased customer activity is a further signal that Canadian people and businesses are looking to a sustainable rebound from the pandemic.
“As a result, there’s been solid growth in our Wealth and Personal Banking investment funds under management and real estate secured lending, as well as increased loan and deposit growth in Commercial Banking,” she said.
Wealth management
For the bank’s wealth and personal banking division, total operating income for the second quarter of 2021 was $209m, an increase of $29m or 16% compared with the second quarter of 2020. Total operating income for the half-year was $416m, an increase of $29m or 7.5%.
Commercial banking posted operating income of $254m, an increase of $25m or 11% compared with the second quarter of 2020; although total operating income for the half-year was $493m, a decrease of $2m or 0.4%.
Global markets and banking posted total operating income of $76m, a decrease of $25m or 25% compared with the second quarter of 2020. Total operating income for the half-year was $157m, a decrease of $20m or 11%.
These decreases resulted from rate reductions on deposit net interest income, offsetting gains from growing advisory fees and higher lending income, along with lower sales and trading volumes.
Global results
Globally, the UK-based banking group saw pre-tax profit for the first half of 2021 rise to $10.8bn (£7.8bn), compared to $4.3bn for the same time last year.
"I'm pleased with the momentum generated around our growth and transformation plans, with good delivery against all four pillars of our strategy. In particular, we have taken firm steps to define the future of our US and continental Europe businesses", HSBC chief executive Noel Quinn told the BBC.
