hsba201306176k.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- ..............).
 
 


 
17 June 2013
 
 
HSBC BANK MALAYSIA BERHAD
RESULTS FOR THE QUARTER ENDED
31 MARCH 2013 - HIGHLIGHTS
 
 
·    Profit before tax for the three months ended 31 March 2013 was MYR381m, a decrease of MYR57m or 13.0% compared with the same period in 2012.
 
 
·    Operating income before loan impairment charges and other risk provisions reduced to MYR736m, a decrease of MYR32m or 4.1% compared with the same period in 2012.
 
 
·     Loan impairment charges and other credit risk provisions increased by MYR43m or 106.4% compared with the same period in 2012 primarily on higher net collective impairment provisions.
 
 
·    Cost efficiency ratio for the three months ended 31 March 2013 improved to 36.8% from 37.7% for the same period in 2012.
 
 
·    Total assets of MYR78.8bn at 31 March 2013 increased from MYR76.6bn at 31 December 2012 (31 March 2012: MYR73.2bn).
 
 
·    Core capital ratio and risk-weighted capital ratio remain strong at 10.5% and 13.2% respectively at 31 March 2013.
 
 
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.
 
 
 
CEO Commentary
Mukhtar Hussain, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia Berhad ('the Bank'), commented: "Profit before tax for the three months ended 31 March 2013 was MYR381m, a decrease of MYR57m or 13.0% compared with the same period last year on lower revenue and higher loan and financing impairment charges, the impact of which was cushioned by reduced operating expenses. The decline in revenue was mainly due to the slowdown in the economy in the first quarter stemming from uncertainties leading up to the Malaysian General Elections, whilst the increase in loan and financing impairment charges was mainly on higher collective impairment provisions. Despite the lower operating profits, the cost efficiency ratio showed an improvement, from 37.7% for the first three months of 2012 to 36.8% for the three months ended 31 March 2013. The ongoing global restructuring efforts resulted in a leaner organisational structure and helped reduce operating expenses."
 
Financial commentary
HSBC Bank Malaysia Berhad reported profit before tax of MYR381m for the first three months of 2013, a decrease of 13.0% or MYR57m compared with the same period in 2012. The decline was mainly due to an increase in loan and financing impairment charges of MYR43m or 106.4% and a decrease in operating income of MYR31m or 4.1%. The reduction was partially offset by lower operating expenses by MYR18m or 6.2%.
 
Loan impairment charges and other credit risk provisions for the three months ended 31 March 2013 increased to MYR83m, mainly because of higher net collective impairment provisions (up MYR49m compared to the same period in 2012) due to the expansion in the customer loans and financing portfolio (up MYR 2.5 billion since 31 March 2012), with 40% of the growth from mortgages  and the remaining 60% growth from corporate term and trade financing.
 
The contraction of non-fund income was the main reason for the decrease in operating income, the largest decline of which was seen in fee income for the current period, primarily due to higher fee income earned in first three months of 2012 on various corporate finance-related deals. Income from Islamic banking fell, mainly on lower gains from trading securities, but this was partially offset by higher foreign currency gains and trading net interest income. Meanwhile, net interest income improved on an
expanded average loan base during the three month period from December 2012 to March 2013 compared against December 2011 to March 2012.
 
Other operating expenses for the three months ended 31 March 2013 showed some improvement at MYR271m (a decrease of MYR18m or 6.2%) compared with the same period in 2012, mainly on lower personnel costs (down MYR18m or 11.7%) as on-going restructuring efforts resulted in a leaner organisational structure. As such, despite lower operating profits, the cost efficiency ratio shows an improvement, from 37.7% for first three months of 2012 to 36.8% for three months ended 31 March 2013.
 
Total balance sheet size increased by MYR2.2bn or 2.9% from MYR76.6bn at 31 December 2012 to MYR78.8bn at 31 March 2013mainly driven by higher deposits from customers (31 March 2013: MYR61.7bn; 31 December 2012: MYR59.9bn).
 
 
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 2007, HSBC Bank Malaysia was the first locally incorporated foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia, and HSBC Amanah Malaysia Berhad, a full-fledged Islamic bank wholly owned by HSBC Bank Malaysia, commenced operations in August 2008. HSBC in Malaysia has a network of 68 branches nationwide, of which 26 are HSBC Amanah Malaysia Berhad branches. In 2006, HSBC was the first foreign bank to be awarded a Takaful (Islamic insurance) license in Malaysia. HSBC Amanah Takaful (Malaysia) SdnBhd, 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.
 
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 6,600 offices in over 80 countries and territories in Europe, Hong Kong, Rest of Asia-Pacific, North and Latin America, and the Middle East and North Africa. With assets of US$2,681bn at 31 March 2013, the HSBC Group is one of the world's largest banking and financial services organisations.
 
 
 
Unaudited Condensed Statements of Financial Position at 31 March 2013
 
 
Group
  
Bank
Figures in MYR '000s
31 Mar 2013
31 Dec 2012
  
31 Mar 2013
 31 Dec 2012
           
Assets
          
Cash and short-term funds
14,770,098
12,663,437
  
12,542,370
11,014,117
Securities purchased under resale agreements
-
2,433,346
  
-
2,433,346
Deposits and placements with banks and other financial institutions
4,879,492
2,992,993
  
6,518,984
4,645,468
Financial assets held-for-trading
3,863,443
4,597,107
  
3,457,364
4,414,598
Financial investments available-for-sale
8,966,883
7,546,325
  
7,760,978
6,281,042
Loans, advances and financing
42,158,494
42,265,895
  
33,696,849
33,782,016
Other assets
2,302,901
2,196,564
  
2,360,114
2,209,665
Statutory deposits with Central Bank
1,303,160
1,330,159
  
968,098
986,598
Investments in subsidiary companies
-
-
  
660,021
660,021
Property and equipment
362,215
369,194
  
335,078
341,355
Intangible assets
53,219
53,525
  
53,195
53,496
Deferred tax assets
178,882
176,014
  
137,416
134,541
Total assets
78,838,787
76,624,559
  
68,490,467
66,956,263
           
Liabilities
          
Deposits from customers
61,654,556
59,938,046
  
52,122,277
51,298,258
Deposits and placements of banks and other financial institutions
6,243,450
6,117,046
  
6,231,326
6,007,271
Bills and acceptances payable
491,803
504,349
  
481,988
488,923
Other liabilities
2,726,578
2,646,149
  
2,844,454
2,625,929
Provision for taxation
33,154
14,168
  
28,966
10,861
Multi-Currency Sukuk Programme
500,000
500,000
  
-
-
Subordinated bonds
1,012,109
1,012,591
  
1,012,109
1,012,591
Total liabilities
72,661,650
70,732,349
  
62,721,120
61,443,833
           
Equity
          
Share capital
114,500
114,500
  
114,500
114,500
Reserves
5,762,637
5,477,710
  
5,354,847
5,097,930
Proposed dividend
300,000
300,000
  
300,000
300,000
Total equity attributable to shareholder of the Bank
6,177,137
5,892,210
  
5,769,347
5,512,430
           
Total liabilities and equity
78,838,787
76,624,559
  
68,490,467
66,956,263
           
Commitments and Contingencies
135,443,837
126,997,325
  
132,941,223
124,988,502
 
 
 
 
Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income
For The Financial Period Ended 31 March 2013
 
 
     
 Group
  
 Bank
     
 31 Mar 2013
 
  
 31 Mar 2012
Restated*
  
 31 Mar 2013
 
  
 31 Mar 2012
Restated*
Figures in MYR'000s
              
Revenue
  
       1,025,081
  
       1,057,375
  
          886,855
  
          916,116
                   
Interest income 
  
           569,041
  
           572,815
  
           578,544
  
           589,675
Interest expense 
         (228,188)
  
         (239,824)
  
         (228,188)
  
         (239,824)
Net interest income 
           340,853
  
           332,991
  
           350,356
  
           349,851
                   
Fee and commission income
           113,736
  
           134,118
  
           113,736
  
           134,118
Fee and commission expense
           (10,648)
  
             (6,125)
  
           (10,648)
  
             (6,125)
Net fee and commission income
           103,088
  
           127,993
  
           103,088
  
           127,993
                   
Net trading income
           150,828
  
           160,550
  
           150,113
  
           160,910
Income from Islamic banking operations 
           127,371
  
           140,096
  
                    -  
  
                    -  
Other operating income 
             13,527
  
               5,758
  
             44,462
  
             31,413
Operating income before impairment losses
           735,667
  
           767,388
  
           648,019
  
           670,167
                   
Loans / financing impairment charges and other credit risk provisions
           (83,408)
  
           (40,414)
  
           (51,306)
  
             (1,609)
Net operating income
           652,259
  
           726,974
  
           596,713
  
           668,558
                   
Other operating expenses 
         (271,033)
  
         (288,926)
  
         (251,258)
  
         (267,796)
Profit before income tax expense
           381,226
  
           438,048
  
           345,455
  
           400,762
                   
Income tax expense
           (97,316)
  
         (112,038)
  
           (88,427)
  
         (102,645)
Profit for the period
           283,910
  
           326,010
  
           257,028
  
           298,117
                   
Other comprehensive income
              
Revaluation reserve:
              
Cash flow hedge
              
 
Effective portion of changes in fair value
                  (12)
  
                (384)
  
                  (12)
  
                (384)
 
Net amount transferred to profit or loss
                  (96)
  
                    -  
  
                  (96)
  
                    -  
Fair value reserve
              
 
Change in fair value
               5,423
  
             (3,841)
  
               4,090
  
             (3,502)
 
Amount transferred to profit or loss
             (7,631)
  
                    -  
  
             (7,631)
  
                    -  
Income tax relating to components of other comprehensive income
                  579
  
                  960
  
                  912
  
                  875
Other comprehensive income for the period, net of income tax
             (1,737)
  
             (3,265)
  
             (2,737)
  
             (3,011)
Total comprehensive income for the period
           282,173
  
           322,745
  
           254,291
  
           295,106
                   
Profit attributable to the owner of the Bank
           283,910
  
           326,010
  
           257,028
  
           298,117
Total comprehensive income attributable to the owner of the Bank
           282,173
  
           322,745
  
           254,291
  
           295,106
                   
Basic earnings per MYR0.50 ordinary share 
 124.0 sen
  
 142.4 sen
  
 112.2 sen
  
 130.2 sen
                   
* 2012 figures restated due to changes in accounting policies. Full details are set out in Note 33 of HSBC Bank Malaysia Berhad's unaudited condensed interim financial statements dated 31 March 2013 which is available on www.hsbc.com.my

 
 
 
 
 
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: 17 June 2013