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 November, 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 NINE MONTHS ENDED 30 SEPTEMBER 2007 - HIGHLIGHTS
- Profit before taxation of MYR720 million up MYR14 million, or 1.9 per
cent, for the nine months ended 30 September 2007 compared with MYR706
million for the same period in 2006.
- Profit before allowance for losses on loans and financing of MYR946
million up MYR164 million, or 21.0 per cent, for the nine months ended 30
September 2007 compared with MYR782 million for the same period in 2006
mainly attributable to the following:
- Revenue of MYR2.4 billion up MYR308 million, or 14.7 per cent, for the
nine months ended 30 September 2007 compared with MYR2.1 billion for the
same period in 2006.
- Net interest income of MYR828 million up MYR105 million, or 14.6 per
cent, for the nine months ended 30 September 2007 compared with MYR723
million for the same period in 2006.
- Income from Islamic banking operations of MYR174 million up MYR51
million, or 41.1 per cent, for the nine months ended 30 September 2007
compared with MYR123 million for the same period in 2006.
- Allowance for losses on loans and financing of MYR226 million up MYR151
million, or 201.3 per cent, for the nine months ended 30 September 2007
compared with MYR75 million for the same period in 2006.
- Cost efficiency ratio for the nine months ended 30 September 2007
improved to 42.9 per cent from 45.7 per cent for the same period in 2006.
- Total assets of MYR44.8 billion up MYR3.8 billion, or 9.2 per cent, at
30 September 2007 compared with MYR41.0 billion at 31 December 2006.
HSBC Bank Malaysia Berhad - results for the nine months ended 30 September 2007
HSBC Bank Malaysia Berhad has reported solid growth in revenue of 14.7 per cent
and profit before allowance of 21.0 per cent for the nine months ended 30
September 2007 compared with the corresponding period last year. This is mainly
attributable to growth in all major income streams, including net interest
income, trading income and income from Islamic banking operations. Growth in
pre-tax profit for the nine months ended 30 September 2007 was a moderate 1.9
per cent, or MYR13 million, compared with the same period in 2006 as a result of
higher allowance for losses on loans and financing primarily due to higher
impairment allowances against corporate lending.
Higher net interest income for the first nine months of 2007 was principally
driven by year-on-year growth in lending of MYR2.7 billion, or 11.0 per cent,
while income from Islamic banking operations rose strongly, by 41.1 per cent
against the same period last year, due to growth in finance income from consumer
credit and hire purchase financing.
Other operating income for the nine months ended 30 September 2007 grew 10.1 per
cent compared with the corresponding period in 2006. This was mainly as a result
of higher foreign exchange profits due to volatility of the Malaysian ringgit
and further liberalisation of the Central Bank's foreign exchange administrative
rules which resulted in higher hedging activities by corporate customers.
Other operating expenses for the first nine months of 2007 increased by 8.2 per
cent, or MYR53 million, against the same period last year mainly due to higher
personnel costs and inter company expenses.
The cost efficiency ratio for the nine months ended 30 September 2007 improved
to 42.9 per cent from 45.7 per cent for the same period in 2006. This was a
result of strong growth in all major income streams while other operating
expenses grew at a slower pace.
Profit before tax of MYR226 million for the three months ended 30 September 2007
decreased by MYR67 million, or 22.9 per cent, compared with the corresponding
period last year. This was primarily attributable to an exceptional profit of
MYR35 million gained from the disposal of a merchant acquiring credit card
business in July 2006 to a joint venture between HSBC and Global Payments Inc,
coupled with higher individual impairment allowances against consumer lending,
as well as increased general impairment allowance due to the expanded loan base.
Total assets at 30 September 2007 grew by MYR3.8 billion, or 9.2 per cent. This
was mainly attributable to increased corporate lending, up MYR2.7 billion, or
10.1 per cent compared with 31 December 2006. Customer deposits of MYR35.9
billion at 30 September 2007 increased by MYR4.1 billion, or 11.3 per cent,
compared with 31 December 2006 as a result of the bank's continuous efforts to
raise Premier and demand deposits.
Irene Dorner, deputy chairman and CEO of HSBC Bank Malaysia Berhad, commented:
"Amidst an increasingly competitive banking environment, HSBC Bank Malaysia
Berhad continues to show robust growth in all major income sources as well as
balance sheet size. The Bank will continue its broad-based growth strategy with
a focus on higher potential areas such as Islamic financing and SMEs.
"The Bank is well positioned to capitalise on business opportunities arising
from the progressive liberalisation of the local finance service sector. It will
continue to strengthen and broaden customer relationships, improve product and
service quality, and provide value-added services to ensure HSBC Bank Malaysia
Berhad is the best place to bank for our customers. In 2006 and early 2007, the
Bank set up four new branches in Malaysia which further strengthened our branch
network to 40 and expanded our geographical reach to a wider customer base.
"In view of the strong local economic fundamentals such as benign inflationary
trend, low unemployment and a strong current account balance, the Malaysian
economy is expected to grow at 6 per cent in 2007 and further strengthen to
6-6.5 per cent in 2008. The Bank is well positioned to explore and capture new
business opportunities in the potential growth areas by leveraging on our strong
brand, global network and expertise in the banking industry."
UNAUDITED CONDENSED BALANCE SHEET AS AT 30 SEPTEMBER 2007
Group Bank
Figures in MYR '000s 30Sep07 31Dec06 30Sep07 31Dec06
Assets
Cash and short-term funds 5,736,739 6,114,345 5,736,739 6,114,345
Securities purchased under resale
agreements 2,033,782 2,273,539 2,033,782 2,273,539
Deposits and placements with banks
and other financial institutions 132,695 1,989,882 132,695 1,989,882
Securities held-for-trading 1,532,424 795,937 1,532,424 795,937
Securities available-for-sale 5,841,110 3,806,463 5,841,110 3,806,463
Loans, advances and financing 27,073,900 24,343,937 27,073,900 24,343,937
Other assets 1,013,133 578,089 1,013,133 578,089
Statutory deposits with Central
Bank Malaysia 986,447 698,648 986,447 698,648
Investment in subsidiaries - - 21 21
Prepaid land lease payments 21,129 21,493 21,129 21,493
Property, plant and equipment 278,134 281,894 278,134 281,894
Intangible assets 39,682 29,172 39,682 29,172
Deferred tax assets 86,997 69,330 86,997 69,330
Total assets 44,776,172 41,002,729 44,776,193 41,002,750
Liabilities
Deposits from customers 35,895,479 31,822,208 35,895,500 31,822,229
Deposits and placements of banks
and other financial institutions 2,503,713 1,934,326 2,503,713 1,934,326
Obligations on securities sold under
repurchased agreements - 1,660,739 - 1,660,739
Bills and acceptances payable 505,224 490,055 505,224 490,055
Other liabilities 1,676,333 1,351,441 1,676,333 1,351,441
Recourse obligation on loans sold to
Cagamas Berhad 774,828 899,751 774,828 899,751
Provision for taxation 44,272 31,278 44,272 31,278
Subordinated bonds 500,000 - 500,000 -
Total liabilities 41,899,849 38,189,798 41,899,870 38,189,819
Shareholders' funds
Share capital 114,500 114,500 114,500 114,500
Reserves 2,761,823 2,448,431 2,761,823 2,448,431
Proposed dividend - 250,000 - 250,000
Shareholders' funds 2,876,323 2,812,931 2,876,323 2,812,931
Total liabilities and shareholders'
funds 44,776,172 41,002,729 44,776,193 41,002,750
Commitments and contingencies 79,131,835 60,087,067 79,131,835 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 THIRD FINANCIAL QUARTER/PERIOD ENDED
30 SEPTEMBER 2007
Group and Bank
3rd quarter ended Year-to-date ended
30Sep07 30Sep06 30Sep07 30Sep06
MYR'000 MYR'000 MYR'000 MYR'000
Revenue 813,351 779,309 2,405,400 2,097,632
Interest income 504,056 465,174 1,486,275 1,285,463
Interest expense (227,716) (211,870) (657,989) (562,903)
Net interest income 276,340 253,304 828,286 722,560
Other operating income 220,394 231,397 653,891 593,825
Income from Islamic banking
operations 59,903 49,490 173,851 123,206
Operating income 556,637 534,191 1,656,028 1,439,591
Other operating expenses (249,533) (211,912) (710,214) (657,687)
Profit before allowance 307,104 322,279 945,814 781,904
Allowance for losses on
loans and financing (80,631) (29,219) (226,312) (75,761)
Profit before taxation and 226,473 293,060 719,502 706,143
zakat
Taxation and zakat (68,055) (78,498) (204,333) (202,806)
Profit attributable to
shareholders 158,418 214,562 515,619 503,337
Earnings per MYR0.50
ordinary share
- basic/diluted 69.2 sen 93.7 sen 225.0 sen 219.8 sen
Dividends per MYR0.50
ordinary share (net)
- paid in respect of prior
year - - 109.2 sen 65.5 sen
- interim dividend paid 87.3 sen 65.5 sen 87.3 sen 65.5 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: 16 November 2007