HSBC Bermuda sees profits rise to $143m

Pedro Gonçalves
HSBC Bermuda sees profits rise to $143m

HSBC Bermuda's net profit rose 3% to $143m last year, with total operating income before expected credit losses reaching $281m.

The bank said decreases in net interest income were offset by higher net fee income, dealing profits, and gains on financial investments.

"The level of expected credit losses for the year was higher than last year but within expectations. Our balance sheet remains conservatively positioned from a capital and liquidity perspective," Steve Banner, chief executive officer and director, HSBC Bermuda, said: 

The results for the 2019 financial year demonstrate the resilience of our business in Bermuda"

He added: "The results for the 2019 financial year demonstrate the resilience of our business in Bermuda. Our revenues remained stable, despite some headwinds, and we managed our costs prudently.

"During the year we helped many Bermudian companies gain access to international capital and continued to fulfil our objective of providing international connectivity for Bermuda."

Change in expected credit losses for 2019 was a $9m charge, compared to a $3mrelease in 2018. The charge was mainly incurred on residential mortgage lending, the bank said. The overall level of impaired loans remained consistent at around $360m.

Total assets increased by 4% over the year to $8.38 billion as of December 31, 2019.

Banner added: "I was proud to see HSBC's continued support for the local community. In 2019 our staff contributed over 1,300 hours of volunteering for worthy local causes during company time.

"On behalf of the board, I would like to thank all our customers for placing their trust in HSBC and our hard-working employees for their dedication in serving our customers and our community."

Total operating expenses decreased by $14m, or 10%, to $129m, as a result of lower litigation expenses and prudent cost controls, the bank said.


Subscribe to International Investment's free, twice-daily, newsletter