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 2010

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- ..............).

 

 

21 May 2010
 
 
HSBC BANK MALAYSIA BERHAD
RESULTS FOR THE FIRST FINANCIAL QUARTER ENDED
31 MARCH 2010 - HIGHLIGHTS
 
 
·   
Profit before tax for the three months ended 31 March 2010 was MYR297 million, 19.8 per cent higher than the MYR248 million reported for the same period in 2009.
 
·    
Operating income grew to MYR597 million, an increase of MYR45 million or 8.2 per cent compared with the same period in 2009, mainly due to higher trading profits of MYR134 million, an increase of MYR33 million or 33.2 per cent, and higher net fee income of MYR106 million, an increase of MYR20 million or 22.6 per cent.
 
·    
Loan impairment charges and other credit risk provisions decreased by MYR18 million or 37.7 per cent to MYR30 million for the three months ended 31 March 2010, compared with the same period in 2009.
 
·   
Cost efficiency ratio for the three months ended 31 March 2010 deteriorated to 45.3 per cent from 44.6 per cent for the corresponding period in 2009.
 
·   
Total assets of MYR58.1 billion increased from MYR55.1 billion as at 31 December 2009.
 
·    
Core capital ratio and risk-weighted capital ratio (net of proposed dividends) remained strong at 10.1 per cent and 14.6 per cent respectively at 31 March 2010, compared with
9.6 per cent and 14.3 per cent respectively at 31 March 2009.
 
 
 
 
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.
 
 
 

Commentary
 
HSBC Bank Malaysia Berhad ('the Bank') posted profit before tax of MYR297 million in the first three months of 2010 (MYR248 million for the same period in 2009), a growth of 19.8 per cent as the Malaysian economy started to show positive signs of recovery after the global financial crisis peaked in the first quarter of 2009.
 
Operating income grew by MYR45 million or 8.2 per cent compared with the same period in 2009, mainly due to higher trading profits of MYR33 million or 33.2 per cent, higher net fee income of MYR20 million or 22.6 per cent and higher income from Islamic banking of MYR9 million or 12.6 per cent; partially offset by lower gains on disposal of available-for-sale financial investments of MYR19 million.
 
Trading profits grew mainly on higher gains on derivatives trading and sales of financial assets held-for-trading while net fee income increased on higher fees and commission from credit cards, sales of third party unit trusts and service charges.
 
Income from Islamic banking increased mainly on lower profit attributable to depositors due to deposit rates being higher in the first two months of 2009 compared to 2010. In addition, marginally higher profit was earned from Islamic advances and financing as a large percentage of the Islamic portfolio consisted of fixed rate personal instalment loans which were relatively unaffected by the reduction in the Overnight Policy Rate.
 
Other operating expenses for the three months ended 31 March 2010 increased by 9.8 per cent or MYR24 million to MYR271 million compared with MYR247 million for the same period in 2009, mainly due to higher general administrative expenses (up MYR9 million or 12.8 per cent) and promotion and marketing expenses (up MYR8 million or 62.1 per cent). General administrative expenses were higher as inter-company recharges increased after the transfer of the Bank's call centre to its Global Shared Service Centre while the increased promotion and marketing expenses were mostly credit card related.
 
The cost efficiency ratio for the first quarter of 2010 deteriorated to 45.3 per cent from 44.6 per cent in the same period last year as operating expenses grew at a faster pace compared to operating income.
 
Loan impairment charges and other credit risk provisions for the three months ended 31 March 2010 decreased by MYR18 million or 37.7 per cent against the corresponding period in 2009, mainly on lower impairment charges on loans to corporate customers as improving economic conditions has resulted in a decline in the flow of impaired loans.
 
Total assets increased by MYR2.9 billion or 5.3 per cent against 31 December 2009, in line with the increase in deposits from customers of MYR2.0 billion or 4.5 per cent (31 March 2010: MYR46.7 billion; 31 December 2009: MYR44.7 billion). Gross loans, advances and financing as at 31 March 2010 stood at MYR29.7 billion, slightly higher than the MYR29.5 billion recorded as at 31 December 2009.
 
Mr Mukhtar Hussain, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia Berhad commented:
 
"The improvement in the Bank's 2010 first quarter results mirrored the gradual recovery of the Malaysian economy with underlying support from strengthening domestic demand and continued improvement in the regional economies.
 
"With ample liquidity in the market and improved investor and consumer sentiment, we saw capital market activities gradually returning to their pre financial crisis levels and demand for credit increasing. As the local economy growth momentum increased, the Central Bank of Malaysia has started to normalise interest rates.
 
"We remain cautious as the world economy has yet to fully recover but are investing selectively in our business to meet the growing demand in the local market."  
 
 
 
 
Media enquiries to Elizabeth Wee on +603 22 703 351 or at
elizabethwee@hsbc.com.my
 
 
 
Note to editors:
 
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
 


Unaudited Condensed Statements of Financial Position as at 31 March 2010
 


Group

Bank
Figures in MYR '000s
31 Mar 2010
31 Dec 2009
 
31 Mar 2010
 31 Dec 2009






Assets

Restated*


Restated*
Cash and short-term funds
13,597,657
11,709,558

13,178,800
11,480,483
Securities purchased under resale agreements
7,589,726
6,780,923

7,589,726
6,780,923
Deposits and placements with
  banks and other financial institutions 
1,066,947
142,812

2,008,942
1,085,869
Financial Assets Held-for-Trading
1,531,730
1,282,817

1,474,264
1,155,431   
Financial Investments Available-for-Sale
3,086,396
4,855,892

2,765,532
4,471,672
Loans, advances and financing
28,888,957
28,623,792

25,533,432
25,458,819
Other assets
1,679,544
1,135,215

1,657,719
1,116,912
Statutory deposits with Central Bank
187,527
178,827

159,098
150,298
Investment in subsidiaries
-
-

660,021
660,021
Property and equipment
285,446
287,872

275,979
280,372
Intangible assets
56,141
57,187

54,096
54,964
Deferred tax assets
85,719
82,614

71,766
68,730
Total assets
58,055,790
55,137,509

55,429,375
52,764,494






Liabilities





Deposits from customers
46,701,509
44,686,358

44,146,671
42,213,968
Deposits and placements of banks
   and other financial institutions
2,610,246
2,819,638

2,394,786
2,710,022
Bills and acceptances payable
346,079
311,616

339,829
308,318
Other liabilities
2,916,488
1,821,930

3,166,933
2,118,650
Recourse obligation on loans sold to National 
   Mortgage Corporation 
565,481
575,511

565,481
575,511
Provision for taxation
50,7333
37,773

47,036
33,986
Subordinated bonds
1,004,476
1,000,385

1,004,476
1,000,385
Total liabilities
54,195,012
51,253,211

51,665,212
48,960,840






Equity





Share capital
114,500
114,500

114,500
114,500
Reserves
3,746,278
3,519,798

3,649,663
3,439,154
Proposed dividend
-
250,000

-
250,000
Total equity attributable to shareholders
3,860,778
3,884,298

3,764,163
3,803,654






Total liabilities and equity
58,055,790
55,137,509

55,429,375
52,764,494






Commitments and contingencies
77,626,230
75,667,293

76,228,649
74,087,292


*
2009 figures restated due to various changes in accounting policies adopted in 2010. Full details are set out on pages 28 to 30 of HSBC Bank Malaysia's Unaudited Condensed Interim Financial Statements which are available at www.hsbc.com.my.
 

Unaudited Condensed Statements of Comprehensive Income
For the First Financial Quarter ended 31 March 2010
 
 


Group

Bank
Figures in MYR'000s (Year-To-Date ended)
 31 Mar 2010
 31 Mar 2009

 31 Mar 2010
 31 Mar 2009







Revenue  

785,206
790,703

728,154
729,683








Interest income    

438,817
480,217

445,962
486,596
Interest expense       
(170,715)
(215,591)

(170,715)
(215,591)
Net Interest income
268,102
264,626

275,247
271,005






Fee and commission income
113,023
92,299

113,023
92,299
Fee and commission expense        
(6,839)
(5,708)

(6,839)
(5,708)
Net fee and commission income
106,184
86,591

106,184
86,591






Net trading income          
134,105
100,700

134,105
100,700
Income from Islamic Banking          
76,824
68,221

-
-
Other operating income
12,245
31,851

35,064
50,088
Operating income before impairment losses
597,460
551,989

550,600
508,384








Loan impairment charges and other credit
    risk provisions
(30,163)
(48,410)

(18,968)
(35,845)
Impairment losses on available-for-sale
    financial investments
-
(9,637)

-
(9,637)
Net operating income
567,297
493,942

531,632
462,902







Other operating expenses

(270,631)
(246,373)

(256,645)
(233,107)
Profit before income tax expense
296,666
247,569

274,987
229,795







Income tax expense
(75,225)
(63,279)

(70,810)
(58,052)
Profit attributable to shareholders
221,441
184,290

204,177
171,743






Other comprehensive income





Deferred tax adjustment on revaluation reserve
-
756

-
756
Fair value reserve (available-for-sale financial
    investments):





     -Change in fair value
(4,821)
2,544

(3,576)
1,245
     -Amount transferred to profit or loss
(4,614)
(22,417)

(4,614)
(22,417)
Income tax relating to components of other
     comprehensive income
1,960
4,933

2,051
5,244
Other comprehensive income for the   
     period, net of income tax
(7,475)
(14,184)

(6,139)
(15,172)






Total comprehensive income for the period
213,966
170,106

198,038
156,571






Profit attributable to shareholders             
221,441
184,290

204,177
171,743
Total comprehensive income attributable to
     shareholders
213,966
170,106

198,038
156,571








Basic earnings per MYR0.50 ordinary share
96.7 sen
80.5 sen

89.2 sen
75.0 sen







Dividends per MYR0.50 ordinary share (net)





-paid in respect of prior year
109.2 sen
-

109.2 sen
-


 


 

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: 21 May, 2010