FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of May, 2007
HSBC Holdings plc
42nd Floor, 8 Canada
Square, London E14 5HQ, England
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form 20-F X Form 40-F ......
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes....... No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)
HSBC BANK MALAYSIA BERHAD
RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2007 -
HIGHLIGHTS
- Profit before allowance for losses on loans and financing increased by
42.5 per cent to MYR316 million for the three months ended 31 March 2007
(MYR222 million for the same period in 2006).
- Profit before taxation of MYR308 million for the three months ended 31
March 2007 was 48.2 per cent higher than the MYR208 million reported for the
same period in 2006.
- Cost efficiency ratio improved to 40.6 per cent from 47.6 per cent for
the corresponding period in 2006.
- Net interest income for the three months ended 31 March 2007 up 20.5 per
cent to MYR274 million (MYR227 million for the same period in 2006).
- Income from Islamic banking operations rose by 75.8 per cent for the
three months ended 31 March 2007 to MYR55 million (MYR31 million in the same
period last year).
- Total assets grew by MYR6.9 billion, or 19.1 per cent, to MYR43.5
billion at 31 March 2007 compared with MYR36.6 billion at 31 March 2006.
HSBC Bank Malaysia Berhad reported its highest ever quarterly result in the
first quarter of 2007. This reflected improved performance across most of the
bank's businesses, in particular in consumer and commercial banking. The bank's
profit before tax of MYR308 million was 48.2 per cent higher than for the same
period in 2006.
Higher net interest income was principally driven by year-on-year growth in
lending of MYR2.0 billion, or 9.1 per cent, in higher margin products, including
cards and consumer finance, as well as widening spreads.
Total assets grew by MYR6.9 billion, or 19.1 per cent, mainly attributable to
the growth in customer deposits (up MYR5.6 billion or 19.9 per cent compared to
31 March 2006), primarily as a result of successful marketing campaigns.
Income from Islamic banking operations rose strongly, by 75.8 per cent, due to
growth in Islamic financing, mainly in consumer credit, and improved profit
margins.
Other operating income was up 23.3 per cent to MYR203 million from MYR164
million for the same period in 2006. This was mainly attributable to higher
foreign exchange profits due to strengthening of the Malaysian ringgit and
further liberalisation of the Central Bank's foreign exchange administrative
rules which resulted in higher hedging activities by corporates.
Zarir J Cama, deputy chairman and CEO of HSBC Bank Malaysia Berhad, commented:
"This excellent performance reflects the success of the bank's strategy to
create a broad base of income sources and a well-balanced loan portfolio with an
even split between corporate and consumer credit.
"The local banking sector remains highly competitive with both conventional and
Islamic banks expanding their networks aggressively. However, HSBC Bank Malaysia
Berhad is well-positioned in all growth areas, ranging from value-added consumer
banking, financing and investment products to innovative financial solutions for
corporates to capture new business opportunities. This is particularly the case
in Islamic banking which has great growth potential.
"Besides exploring growth opportunities, the bank has embarked on a number of
customer focused initiatives to reduce operational costs and improve customer
service delivery with the goal of becoming the most preferred bank in Malaysia."
UNAUDITED CONDENSED BALANCE SHEET AS AT 31 MARCH 2007
Group Bank
Figures in MYR '000s 31Mar07 31Dec06 31Mar07 31Dec06
Assets
Cash and short-term funds 5,208,215 6,114,345 5,208,215 6,114,345
Securities purchased under
resale agreements 2,893,018 2,273,539 2,893,018 2,273,539
Deposits and placements
with banks and other
financial institutions 2,660,975 1,989,882 2,660,975 1,989,882
Securities held-for-trading 1,456,506 795,937 1,456,506 795,937
Securities available-for-
sale 5,461,935 3,806,463 5,461,935 3,806,463
Loans, advances and
financing 24,042,636 24,343,937 24,042,636 24,343,937
Other assets 701,535 578,089 701,535 578,089
Statutory deposits with
Central Bank Malaysia 705,148 698,648 705,148 698,648
Investment in subsidiaries
companies - - 21 21
Property, plant and equipment 302,263 303,387 302,263 303,387
Intangible assets 35,619 29,172 35,619 29,172
Deferred tax assets 69,063 69,330 69,063 69,330
Total assets 43,536,913 41,002,729 43,536,934 41,002,750
Liabilities
Deposits from customers 33,933,980 31,822,208 33,934,001 31,822,229
Deposits and placements of
banks and other financial
institutions 2,095,032 1,934,326 2,095,032 1,934,326
Obligations on securities
sold under repurchased
agreements 1,812,175 1,660,739 1,812,175 1,660,739
Bills and acceptances
payable 461,060 490,055 461,060 490,055
Other liabilities 1,503,649 1,351,441 1,503,649 1,351,441
Recourse obligation on loans
sold to Cagamas Berhad 890,443 899,751 890,443 899,751
Provision for taxation 51,077 31,278 51,077 31,278
Total liabilities 40,747,416 38,189,798 40,747,437 38,189,819
Shareholders' funds
Share capital 114,500 114,500 114,500 114,500
Reserves 2,674,997 2,448,431 2,674,997 2,448,431
Proposed dividend - 250,000 - 250,000
Shareholders' funds 2,789,497 2,812,931 2,789,497 2,812,931
Total liabilities and
shareholders' funds 43,536,913 41,002,729 43,536,934 41,002,750
Commitments and
contingencies 65,047,866 60,087,067 65,047,866 60,087,067
Note: The financial statements of HSBC Bank Malaysia Berhad have been prepared
in accordance with the applicable approved accounting standards issued by the
Malaysian Accounting Standards Board.
UNAUDITED CONDENSED INCOME STATEMENT
FOR THE FIRST QUARTER ENDED 31 MARCH 2007
Group and Bank
Figures in MYR '000s 31Mar07 31Mar06
Revenue 770,798 619,962
Interest income 483,304 393,829
Interest expense (209,614) (166,731)
Net interest income 273,690 227,098
Other operating income 202,794 164,468
Income from Islamic banking operations 55,040 31,303
Operating income 531,524 422,869
Other operating expenses (215,689) (201,190)
Profit before allowance 315,835 221,679
Allowance for losses on loans and
financing (7,718) (13,727)
Profit before taxation 308,117 207,952
Taxation (86,270) (65,696)
Profit attributable to shareholers 221,847 142,256
Earnings per MYR0.50 ordinary share
- basic/diluted 96.9 sen 62.1 sen
Note: The financial statements of HSBC Bank Malaysia Berhad have been prepared
in accordance with the applicable approved accounting standards issued by the
Malaysian Accounting Standards Board.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Holdings plc
By:
Name: P A Stafford
Title: Assistant Group Secretary
Date: 11 May 2007