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

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

 

 



 

13 November 2009
 
 

HSBC BANK MALAYSIA BERHAD

RESULTS FOR THE NINE MONTHS ENDED

30 SEPTEMBER 2009


Commentary
 
HSBC Bank Malaysia Berhad ('the Bank') posted profit before tax of MYR631 million in the first nine months of 2009, a fall of 28.3 per cent on the same period in 2008 as the effects from the global economic downturn became more apparent in 2009.
 
A 12.1 per cent, or MYR105 million, decline in net interest income for the nine months ended 30 September 2009 to MYR758 million (nine months ended 30 September 2008: MYR863 million) was principally driven by a reduction in balances as gross customer loans and advances declined by MYR1.7 billion, or 5.6 per cent, from 30 September 2008 to 30 September 2009, coupled with reduced interest margins as the Central Bank of Malaysia progressively lowered the Overnight Policy Rate ('OPR') by 150 basis points from November 2008. The reduction in lending rates was greater than the reduction in floor deposit rates, which are determined by the Central Bank.
 
Other operating income for the nine months ended 30 September 2009 decreased to MYR695 million, down 9.0 per cent or MYR69 million compared to the corresponding period in 2008. This was mainly a result of a decrease of MYR48 million in trading profits, reflecting lower transaction volumes in the foreign exchange market and a decline of MYR34 million in gains from sales of available-for -sale securities, moderated by higher fees and commissions of MYR8 million, primarily due to a rise in commissions on cards' services.
 
Income from Islamic Banking operations for the first nine months of 2009 increased by MYR11 million to MYR199 million compared to the corresponding period in 2008, mainly on the growth in fixed rate Islamic personal instalment loans which were relatively unaffected by the reduction in the OPR.
 
Other operating expenses for the nine months ended 30 September 2009 increased by 7.9 per cent, or MYR59 million, to MYR807 million compared with the same period in 2008. This was mainly due to higher employee costs (up MYR31 million or 7.8 per cent) as provision was made for redundancy costs for employees affected by the transfer of the Bank's call centre activities to a Global Shared Service Centre.
 
Primarily as a result of the decline in operating income, coupled with the increase in other operating expenses, the cost efficiency ratio for the first nine months of 2009 deteriorated to 48.9 per cent from 41.2 per cent in the same period last year.
 
Allowance for losses on loans and financing for the nine months ended 30 September 2009 increased by MYR18 million or 9.4 per cent compared to the same period in 2008, reflecting increased provisions against loans to corporate customers impacted by the slowdown in the economy in the current year.
 
Total assets at 30 September 2009 fell by MYR0.8 billion, or 1.5 per cent, compared to 31 December 2008. Net loans, advances and financing, at MYR28.0 billion, saw a decrease of MYR1.7 billion, or 5.9 per cent, mainly due to lower trade financing activities. However, customer deposits of MYR42.5 billion increased by MYR1.5 billion compared to 31 December 2008 (MYR41.0 billion).
 
Ms Irene M Dorner, Deputy Chairman and Chief Executive Officer of HSBC Bank Malaysia Berhad, commented: 
"Notwithstanding the weaker results, the Malaysian economy is now showing signs of recovery. Given where the economy is, these are satisfactory results for HSBC Bank Malaysia. The implementation of economic stimulus packages by the Government has helped to create increased economic activity and, in part, has restored some investor confidence. Things are beginning to look up in the real economy as we look forward into the fourth quarter of 2009 and into 2010 and although recovery is still slow we expect to see further improvement over this period."
 


 

Media enquiries to Elizabeth Wee on +603 22 703 351 or at elizabethwee@hsbc.com.my
 


Unaudited Condensed Balance Sheets at 30 September 2009

 

Group

 

Bank

Figures in MYR '000s

30 Sep 2009

 

31 Dec 2008

 

30 Sep 2009

 

31 Dec
2008

               

Assets

             

Cash and short-term funds

9,252,410

 

8,428,554

 

8,240,757

 

7,445,455

Securities purchased under resale agreements

6,384,308

 

3,778,793

 

6,384,308

 

3,778,793

Deposits and placements with banks and other financial institutions

603,454

 

997,814

 

1,546,752

 

1,941,125

Securities held-for-trading

1,454,352

 

3,491,259

 

1,342,026

 

3,223,521

Securities available-for-sale

4,524,128

 

3,914,911

 

4,155,595

 

3,349,350

Loans, advances and financing

27,974,086

 

29,719,270

 

25,213,254

 

26,792,239

Other assets

1,260,818

 

1,417,121

 

1,239,783

 

1,424,328

Statutory deposits with Central Bank

179,827

 

653,026

 

154,898

 

580,497

Investment in subsidiaries

-

 

-

 

660,021

 

660,021

Prepaid land lease payments

19,212

 

19,551

 

19,212

 

19,551

Property and equipment

254,942

 

258,092

 

249,924

 

255,609

Intangible assets

56,161

 

51,153

 

53,990

 

49,789

Deferred tax assets

83,385

 

86,769

 

69,520

 

71,566

Total assets

52,047,083

 

52,816,313

 

49,330,040

 

49,591,844

               

Liabilities

             

Deposits from customers

42,465,471

 

40,953,472

 

39,788,127

 

37,709,152

Deposits and placements of banks and other financial institutions

2,145,773

 

3,531,472

 

2,145,773

 

3,531,472

Bills and acceptances payable

287,807

 

414,233

 

281,939

 

413,180

Other liabilities

1,846,322

 

2,569,719

 

1,875,064

 

2,614,505

Recourse obligation on loans sold to National Mortgage Corporation

586,738

 

701,370

 

586,738

 

701,370

Provision for taxation 

18,186

 

41,160

 

16,100

 

41,090

Subordinated bonds

1,004,525

 

1,027,338

 

1,004,525

 

1,027,338

Total liabilities

48,354,822

 

49,238,764

 

45,698,266

 

46,038,107

               

Shareholders' funds

             

Share capital

114,500

 

114,500

 

114,500

 

114,500

Reserves

3,577,761

 

3,313,049

 

3,517,274

 

3,289,237

Proposed dividend

-

 

150,000

 

-

 

150,000

Shareholders' funds

3,692,261

 

3,577,549

 

3,631,774

 

3,553,737

               

Total liabilities and shareholders' funds

52,047,083

 

52,816,313

 

49,330,040

 

49,591,844

               

Commitments and contingencies

76,351,069

 

85,309,889

 

74,910,158

 

83,633,914



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. On 24 August 2008, the Islamic Banking operations which were previously included in the Bank’s operations were transferred to a wholly owned subsidiary, HSBC Amanah Malaysia Berhad.

Unaudited Condensed Income Statement

for the Financial Quarter/Period Ended 30 September 2009

                   
     

Group

     

3rd quarter ended

 

Year-to-date ended

Figures in MYR'000s

30 Sep 2009

 

30 Sep 2008

 

30 Sep 2009

 

30 Sep 2008

                   

Revenue

 

736,605 

 

880,767 

 

2,262,379 

 

2,658,365 

                   

Interest income

 

421,201 

 

558,233 

 

1,329,095 

 

1,610,165 

               

Interest expense

(175,070)

 

(265,565)

 

(570,754)

 

(747,180)

                   
               

Net interest income

246,131 

 

292,668 

 

758,341 

 

862,985 

                   

Other operating income

239,945 

 

216,847 

 

694,593 

 

763,162 

                   

Income from Islamic Banking

64,842 

 

67,096 

 

199,009 

 

187,688 

                   
               

Operating income

550,918 

 

576,611 

 

1,651,943 

 

1,813,835 

               

Other operating expenses

(292,575)

 

(265,281)

 

(807,406)

 

(747,957)

                   
               

Profit before allowance

258,343 

 

311,330 

 

844,537 

 

1,065,878 

                   

Allowance for losses on loans and financing

(69,492)

 

(78,014)

 

(204,255)

 

(186,726)

                   

Impairment losses on available for sale securities

 

 

(9,637)

 

               

Profit before taxation

188,851 

 

233,316 

 

630,645 

 

879,152 

                 

Taxation 

 

(49,506)

 

(62,612)

 

(161,412)

 

(227,045)

                   

Profit attributable to shareholders

139,345 

 

170,704 

 

469,233 

 

652,107 

                   

Earnings per RM0.50 ordinary share

             

- basic/diluted

 

60.8 sen 

 

74.5 sen 

 

204.9 sen 

 

284.7 sen 

                 

Dividends per RM0.50 ordinary share (net)

             

- paid in respect of prior year

 

 

65.5 sen 

 

109.2 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. On 24 August 2008, the Islamic Banking operations which were previously included in the Bank’s operations were transferred to a wholly owned subsidiary, HSBC Amanah Malaysia Berhad.

Unaudited Condensed Income Statement

for the Financial Quarter/Period Ended 30 September 2009

                   
     

Bank

     

3rd quarter ended

 

Year-to-date ended

Figures in MYR’000s

30 Sep 2009

 

30 Sep 2008

 

30 Sep 2009

 

30 Sep 2008

                 

Revenue

 

686,743 

 

846,267 

 

2,100,390 

 

2,623,865 

                 

Interest income

 

427,106 

 

561,710 

 

1,346,858 

 

1,613,642 

               

Interest expense

(175,070)

 

(265,565)

 

(570,754)

 

(747,180)

                   
               

Net interest income

252,036 

 

296,145 

 

776,104 

 

866,462 

               

Other operating income

259,637 

 

223,103 

 

753,532 

 

769,418 

               

Income from Islamic Banking

 

37,407 

 

 

157,999 

                   
               

Operating income

511,673 

 

556,655 

 

1,529,636 

 

1,793,879 

               

Other operating expenses

(282,491)

 

(261,100)

 

(773,210)

 

(743,776)

                   
               

Profit before allowance

229,182 

 

295,555 

 

756,426 

 

1,050,103 

                   

Allowance for losses on loans and financing

(58,231)

 

(75,455)

 

(166,459)

 

(184,167)

                   

Impairment losses on available-for-sale securities

 

 

(9,637)

 

               

Profit before taxation

170,951 

 

220,100 

 

580,330 

 

865,936 

               

Taxation

(44,580)

 

(58,968)

 

(147,715)

 

(223,401)

                   

Profit attributable to shareholders

126,371 

 

161,132 

 

432,615 

 

642,535 

                   

Earnings per RM0.50 ordinary share

             

- basic/diluted

 

55.2 sen 

 

70.4 sen 

 

188.9 sen 

 

280.6 sen 

                   

Dividends per RM0.50 ordinary share (net)

             

- paid in respect of prior year

 

 

65.5 sen 

 

109.2 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. On 24 August 2008, the Islamic Banking operations which were previously included in the Bank’s operations were transferred to a wholly owned subsidiary, HSBC Amanah Malaysia Berhad.

 

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:  13 November 2009