hsba201206286k4.htm
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 June
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- ..............).
 
 
 
 


 
 


 
 
 
 
29 June 2012
 
 
HSBC BANK MALAYSIA BERHAD
RESULTS FOR THE QUARTER ENDED 31 MARCH 2012 - HIGHLIGHTS
 
 
·    Profit before tax for the three months ended 31 March 2012 was MYR429m, MYR135m or 45.6% higher than reported for the same period in 2011.
 
 
·     Operating income grew to MYR767m, an increase of MYR126m or 19.7% compared with the same period in 2011.
 
 
·     Loan impairment charges and other credit risk provisions remained stable at MYR49m for the three months ended 31 March 2012 compared with the same period in 2011 (MYR50m).
 
 
·    Cost efficiency ratio for the three months ended 31 March 2012 improved to 37.7% from 46.3% for the same period in 2011.
 
 
·    Total assets of MYR72.8bn at 31 March 2012 decreased from MYR79.7bn at 31 December 2011 (31 March 2011: MYR66.5bn).
 
 
·    Core capital ratio and risk-weighted capital ratio (net of proposed dividends) remain strong at 9.1% and 12.7% respectively at 31 March 2012.
 
 
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
 
Mukhtar Hussain, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia Berhad ('the Bank') and Global CEO, HSBC Amanah, commented:
 
"We recorded an increase of MYR135m or 45.6% in profit before tax, primarily due to robust growth in operating income that was further aided by a decrease in operating expenses and stable loan impairment charges. This is a good start to the financial year.
 
"This year, the Malaysian economy is projected to experience slightly lower growth levels of around 4% to 5% compared to the previous year but domestic demand is expected to continue to be the anchor for growth. The upward revision of public sector wages and the implementation of various financial incentives and assistance to low and middle-income groups announced in the 2012 Budget is expected to spur consumer spending. Private investment is likely to be supported by domestically-oriented industries and the ongoing implementation of projects under the Malaysian government's Economic Transformation Programme.
 
"We remain optimistic about the Bank's prospects in Malaysia and stand committed to continue to invest and contribute positively towards the economic and financial development of Malaysia."
 
Financial Commentary
 
HSBC Bank Malaysia Berhad reported profit before tax of MYR429m in the first three months of 2012, an increase of 45.6% or MYR135m compared with the same period in 2011. This was mainly due to an increase in operating income of MYR126m or 19.7% compared with the corresponding financial period, stable loan impairment charges and lower operating expenses of MYR289m, down MYR8m or 2.6%.
 
Operating income grew to MYR767m, an increase of MYR126m or 19.7% compared with the same period in 2011. This was mainly due to higher trading profits of MYR201m, an increase of MYR51m or 34.4%, higher income from Islamic banking operations of MYR140m, an increase of MYR45m or 47.8%, higher net fee income of MYR128m, an increase of MYR14m or 12.1%, and higher net interest income of MYR293m, an increase of MYR14m or 4.9%.
 
Trading profits grew principally on derivatives and net interest income on financial assets held-for-trading ("HFT"), as well as gains on disposal of financial assets HFT. The robust double digit growth rate in income from Islamic Banking Operations was driven by the strong momentum and interest in Islamic Banking in the local and international financial industry, and was further bolstered by the Bank's investments in domestic network coverage and the range of Islamic services and products offered. Net fee income improved on increased corporate finance related fees while net interest income grew on the expanded average loans base. 
 
Other operating expenses for the three months ended 31 March 2012 showed some improvement at MYR289m (a decrease of 2.6% or MYR8m) compared with the same period in 2011, mainly due to lower general administrative expenses (down MYR23m or 23.0%) that was partly offset by higher personnel expenses (up MYR8m or 5.4%). General administrative expenses dropped mainly on decreased recharges for Group Marketing Support services, while the higher personnel expenses were in line with the expansion of the business.
 
Total assets decreased by MYR6.9bn or 8.7% to MYR72.8bn compared with 31 December 2011, attributed mainly to lower deposits and placements from banks and financial institutions (31 March 2012: MYR5.3bn; 31 Dec 2011: MYR9.9bn). Gross loans, advances and financing as at 31 March 2012 were stable at MYR40.5bn (31 December 2011: MYR40.1bn).
 
Media enquiries to Marlene Kaur at +603 2075 3351 or marlenekaur@hsbc.com.my
 


Notes to editors:
 
1. HSBC in Malaysia
HSBC Bank Malaysia Berhad was locally incorporated in 1984 and is a wholly-owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited (a company under the HSBC Group). In 2006, HSBC was the first foreign bank to be awarded a Takaful (Islamic insurance) license in Malaysia. HSBC Amanah Takaful (Malaysia) Sdn Bhd, a joint venture between HSBC Insurance (Asia Pacific) Holdings Limited (49% shareholding), Jerneh Asia Berhad (31% shareholding) and Employees Provident Fund Board of Malaysia (20% shareholding), commenced operations in August 2006. In 2007, HSBC Bank Malaysia Berhad was the first locally incorporated foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia, and HSBC Amanah Malaysia, a full fledged Islamic bank wholly owned by HSBC Bank Malaysia, commenced operations in August 2008. HSBC in Malaysia has a network of 61 branches nationwide, of which 19 are Islamic finance branches.
 
2. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which serves customers worldwide from around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. With assets of US$2,637bn at 31 March 2012, the HSBC Group is one of the world's largest banking and financial services organisations.
 


Unaudited Condensed Statements of Financial Position as at 31 March 2012
 
 
 
Figures in MYR '000s
 Group
     
 31 Mar 2012
 31 Dec 2011
 1 Jan 2011
Assets 
        
Cash and short term funds 
          12,435,340
        21,603,227
    11,815,604
Securities purchased under resale agreements
            3,238,750
          3,682,969
      6,467,863
Deposits and placements with banks 
      
 
and other financial institutions 
            1,536,175
             651,778
         330,981
Financial Assets Held-for-Trading
            7,175,403
          6,217,237
      4,895,060
Financial Investments Available-for-Sale
            4,937,959
          4,873,818
      3,400,090
Loans, advances and financing 
          39,638,472
        39,156,932
    34,076,044
Other assets 
  
            2,179,727
          1,941,383
      2,023,553
Statutory deposits with Central Bank 
            1,028,059
          1,096,060
         221,827
Property and equipment 
               346,654
             354,032
         318,481
Intangible assets
  
                  53,157
               53,263
           60,621
Deferred tax assets 
               217,606
               94,245
         168,344
           
Total assets 
  
          72,787,302
        79,724,944
    63,778,468
           
Liabilities 
        
Deposits from customers 
          57,288,540
        58,523,846
    48,339,424
Deposits and placements from banks  
      
 
and other financial institutions 
            5,275,820
          9,908,962
      6,853,048
Bills and acceptances payable 
               424,694
             521,337
         429,229
Other liabilities 
  
            3,248,963
          4,762,900
      2,354,493
Recourse obligation on loans sold to National Mortgage
Corporation
                             -
                         -
         374,991
Provision for taxation
               197,922
               53,103
         103,158
Subordinated bonds
            1,009,921
          1,015,200
      1,003,039
           
Total liabilities 
  
          67,445,860
        74,785,348
    59,457,382
           
Equity
        
Share capital 
  
               114,500
             114,500
         114,500
Reserves 
  
            4,926,942
          4,525,096
      3,956,586
Proposed dividend 
               300,000
             300,000
         250,000
           
Total equity attributable to owner of the Bank
            5,341,442
          4,939,596
      4,321,086
           
Total liabilities and equity
          72,787,302
        79,724,944
    63,778,468
           
           
Commitments and Contingencies 
       130,682,190
      119,168,960
    87,503,362
 
 
 
 
Unaudited Condensed Statements of Financial Position as at 31 March 2012
 
 
Figures in MYR '000s
 Bank
     
 31 Mar 2012
 31 Dec 2011
 1 Jan 2011
Assets 
        
Cash and short term funds 
            9,915,141
        20,292,272
    10,658,860
Securities purchased under resale agreements
            3,238,750
          3,682,969
      6,467,863
Deposits and placements with banks 
      
 
and other financial institutions 
            4,495,309
          3,687,058
      1,471,815
Financial Assets Held-for-Trading
            7,174,902
          6,000,521
      4,747,054
Financial Investments Available-for-Sale
            4,249,718
          4,451,732
      3,069,425
Loans, advances and financing 
          31,809,297
        31,610,586
    29,439,768
Other assets 
  
            2,208,803
          1,913,656
      1,978,890
Statutory deposits with Central Bank 
               757,497
             867,498
         187,098
Investments in subsidiary companies 
               660,021
             660,021
         660,021
Property and equipment 
               328,672
             335,106
         302,056
Intangible assets
  
                  52,829
               52,802
           59,122
Deferred tax assets 
               188,365
               79,063
         150,342
           
Total assets 
  
          65,079,304
        73,633,284
    59,192,314
           
Liabilities 
        
Deposits from customers 
          49,985,357
        53,047,615
    44,556,909
Deposits and placements from banks  
      
 
and other financial institutions 
            5,268,278
          9,429,554
      6,261,536
Bills and acceptances payable 
                  414,540
              513,737
         423,698
Other liabilities 
  
            3,174,071
          4,845,377
      2,277,196
Recourse obligation on loans sold to National Mortgage
Corporation
                              -
                          -
         374,991
Provision for taxation
                  172,059
               46,265
           98,710
Subordinated bonds
            1,009,921
          1,015,200
      1,003,039
           
Total liabilities 
  
          60,024,226
        68,897,748
    54,996,079
           
Equity
        
Share capital 
  
               114,500
             114,500
         114,500
Reserves 
  
               4,640,578
          4,321,036
      3,831,735
Proposed dividend 
                  300,000
             300,000
         250,000
           
Total equity attributable to owner of the Bank
            5,055,078
          4,735,536
      4,196,235
           
Total liabilities and equity
          65,079,304
        73,633,284
    59,192,314
           
           
Commitments and Contingencies 
       127,938,827
      116,742,039
    85,680,212
 
 
Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income
 
 
Figures in MYR '000s
 Group
 Bank
     
 31 Mar 2012
 31 Mar 2011
 31 Mar 2012
 31 Mar 2011
Revenue
  
      1,099,625
         906,088
       957,163
      821,683
             
Interest income 
  
         573,587
         518,209
       590,447
      527,835
Interest expense 
       (280,872)
        (239,197)
      (280,872)
     (239,197)
Net interest income 
         292,715
         279,012
       309,575
      288,638
             
Fee and commission income
         134,118
         118,397
       134,118
      118,397
Fee and commission expense
           (6,125)
            (4,183)
          (6,125)
         (4,183)
Net fee and commission income
         127,993
         114,214
       127,993
      114,214
             
Net trading income
         200,825
         149,394
       201,185
      149,394
Income from Islamic banking operations 
         140,096
           94,780
                 -  
                -  
Other operating income 
             5,758
             3,579
         31,413
        26,057
Operating income before impairment losses
         767,387
         640,979
       670,166
      578,303
             
Loan / financing impairment charges and
other credit risk provisions
         (48,962)
          (49,485)
        (23,787)
       (28,270)
Net operating income
         718,425
         591,494
       646,379
      550,033
             
Other operating expenses 
       (288,926)
        (296,585)
      (267,796)
     (283,887)
Profit before income tax expense
         429,499
         294,909
       378,583
      266,146
             
Income tax expense
       (109,846)
          (74,852)
        (97,101)
       (68,439)
Profit for the period
         319,653
         220,057
       281,482
      197,707
             
Other comprehensive income
        
Items that may be reclassified subsequently to profit or loss
      
Cash flow hedge
              (384)
                 (34)
             (384)
              (34)
Available-for-sale reserve
        
 
Change in fair value
           (3,841)
            (8,593)
          (3,502)
         (8,222)
 
Amount transferred to profit or loss
                    -
               (256)
                   -
            (256)
Income tax relating to components of other
comprehensive income
                960
             2,212
              875
          2,120
Other comprehensive income for the period,
 net of income tax
           (3,265)
            (6,671)
          (3,011)
         (6,392)
Total comprehensive income for the period
         316,388
         213,386
       278,471
      191,315
             
Profit attributable to the owner of the Bank
         319,653
         220,057
       281,482
      197,707
Total comprehensive income attributable to the
owner of the Bank
         316,388
         213,386
       278,471
      191,315
Basic earnings per MYR0.50 ordinary share 
 139.6 sen
 96.1 sen
 122.9 sen
 86.3 sen
Dividends per MYR0.50 ordinary share (net) 
        
-
 final dividend 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: 29 June 2012