hsba201406186k.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- ..............).
 
 




18 June 2014

HSBC BANK MALAYSIA BERHAD
RESULTS FOR THE FINANCIAL PERIOD ENDED
31 MARCH 2014 - HIGHLIGHTS

·  
Profit before tax for the three months ended 31 March 2014 was MYR395m, an increase of MYR14m or 3.6% compared with the same period in 2013. The higher profit was due to lower loan impairment charges, partly offset by a decrease in operating income and higher operating expenses.

·  
Loan impairment charges decreased by MYR61m or 73.2% compared with the same period in 2013 due to lower collective impairment provisions as a result of improvements in asset quality and lower individual impairment charges on corporates.

·  
Operating expenses increased by MYR35m or 13.1% compared with the same period in 2013, mainly due to higher IT and general administrative expenses.

·  
Operating income before loan impairment charges reduced to MYR724m, a decrease of MYR12m or 1.6% compared with the three months ended 31 March 2013. The decline was mainly due to a decrease in net trading income, partly offset by an increase in net interest income.

·  
Cost efficiency ratio for the three months ended 31 March 2014 deteriorated to 42.3% from 36.8% in the same period in 2013 due to higher operating expenses.

·  
Balance sheet footings at 31 March 2014 grew by MYR1.8bn to MYR81.6bn, mainly due to higher deposits from both financial institutions and customers, which were deployed in to financial assets held-for-trading and financial investments available-for-sale.

·  
Tier 1 capital ratio and total capital ratio remain strong at 11.4% and 14.0% respectively at 31 March 2014 (31 December 2013: 11.3% and 13.8% respectively).


The interim 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.

 

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 Berhad 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 Berhad, 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) 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.

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 over 6,300 offices in over 75 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,758bn at 31 March 2014, the HSBC Group is one of the world’s largest banking and financial services organisations.










Unaudited Condensed Statements of Financial Position at 31 March 2014

 
         Group
  
Bank
Figures in MYR ‘000s
31 Mar 2014
31 Dec 2013
  
31 Mar 2014
 31 Dec 2013
           
Assets
          
Cash and short-term funds
14,045,429
15,454,507
  
11,000,049
12,558,786
Securities purchased under resale agreements
3,406,054
2,877,270
  
3,406,054
2,877,270
Deposits and placements with
  banks and other financial institutions
 
4,951,699
 
4,011,340
  
5,881,373
5,203,425
Financial assets held-for-trading
3,992,520
2,333,390
  
3,953,375
2,243,731
Financial investments available-for-sale
7,642,767
6,499,601
  
5,962,720
5,158,595
Loans, advances and financing
43,159,477
44,659,904
  
33,830,285
35,484,730
Derivative financial assets
1,083,937
1,320,144
  
1,215,121
1,413,325
Other assets
1,601,616
761,686
  
1,649,723
738,904
Statutory deposits with Central Bank
1,252,860
1,384,160
  
857,798
993,598
Investments in subsidiary companies
-
-
  
660,021
660,021
Property and equipment
347,759
355,047
  
327,078
332,254
Intangible assets
56,705
55,352
  
56,697
55,343
Tax recoverable
3,041
14,472
  
-
-
Deferred tax assets
102,822
86,976
  
96,910
79,883
Total assets
81,646,686
79,813,849
  
68,897,204
67,799,865
           
Liabilities
          
Deposits from customers
60,842,605
59,914,419
  
49,461,214
48,883,876
Deposits and placements of banks and other financial institutions
 
9,319,640
 
8,297,828
  
9,083,903
8,270,879
Bills and acceptances payable
457,457
906,595
  
443,171
895,623
Derivative financial liabilities
934,358
1,098,453
  
999,867
1,160,067
Other liabilities
1,804,880
1,636,295
  
1,679,311
1,646,543
Provision for taxation
11,755
16,055
  
11,755
16,055
Multi-Currency Sukuk Programme
500,000
500,000
  
-
-
Subordinated bonds
1,004,942
1,005,071
  
1,004,942
1,005,071
Total liabilities
74,875,637
73,374,716
  
62,684,163
61,878,114
           
Equity
          
Share capital
114,500
114,500
  
114,500
114,500
Reserves
6,356,549
6,024,633
  
5,798,541
5,507,251
Proposed dividend
300,000
300,000
  
300,000
300,000
Total equity attributable to shareholder
 of the Bank
 
6,771,049
 
6,439,133
  
6,213,041
5,921,751
           
Total liabilities and equity
81,646,686
79,813,849
  
68,897,204
67,799,865
           
Commitments and contingencies
144,946,775
140,001,374
  
143,442,343
138,108,215



 


Unaudited Condensed Statements of Profit or Loss and Other Comprehensive Income
For The Financial Period Ended 31 March 2014

     
 Group
  
 Bank
     
31 Mar 2014
 
  
31 Mar 2013
 
  
31 Mar 2014
 
  
31 Mar 2013
 
Figures in MYR’000s
              
Revenue
  
1,000,278
  
1,024,215
  
853,348
  
885,989
                   
Interest income
  
577,836
  
568,175
  
585,219
  
577,678
Interest expense
(211,373)
  
(227,322)
  
(211,373)
  
(227,322)
Net interest income
366,463
  
340,853
  
373,846
  
350,356
                   
Fee and commission income
118,199
  
113,736
  
118,199
  
113,736
Fee and commission expense
(6,152)
  
(10,648)
  
(6,152)
  
(10,648)
Net fee and commission income
112,047
  
103,088
  
112,047
  
103,088
                   
Net trading income
113,919
  
150,828
  
109,911
  
150,113
Income from Islamic banking operations
124,143
  
127,371
  
-
  
-
Other operating income
7,361
  
13,527
  
40,019
  
44,462
Operating income before impairment losses
723,933
  
735,667
  
635,823
  
648,019
                   
Loans / financing impairment charges and other credit   risk provisions
 
(22,377)
  
 
(83,408)
  
 
(7,629)
  
 
(51,306)
Net operating income
701,556
  
652,259
  
628,194
  
596,713
                   
Other operating expenses
(306,513)
  
(271,033)
  
(282,926)
  
(251,258)
Profit before income tax expense
395,043
  
381,226
  
345,268
  
345,455
                   
Income tax expense
(100,276)
  
(97,316)
  
(88,498)
  
(88,427)
Profit for the period
294,767
  
283,910
  
256,770
  
257,028
                   
Other comprehensive income/(expense)
              
Items that will subsequently be reclassified to profit or loss when specific conditions are met
 
Cash flow hedge:
              
 
Effective portion of changes in fair value
1
  
(12)
  
1
  
(12)
 
Net amount transferred to profit or loss
(64)
  
(96)
  
(64)
  
(96)
Available-for-sale reserves:
              
 
Change in fair value
13,654
  
5,423
  
10,319
  
4,090
 
Amount transferred to profit or loss
453
  
(7,631)
  
453
  
(7,631)
Income tax (expense)/credit relating to components of   other comprehensive income
(3,511)
  
579
  
(2,677)
  
912
Other comprehensive income/(expense) for the   period, net of income tax
10,533
  
(1,737)
  
8,032
  
(2,737)
Total comprehensive income for the period
305,300
  
282,173
  
264,802
  
254,291
                   
Profit attributable to the owner of the Bank
294,767
  
283,910
  
256,770
  
257,028
Total comprehensive income attributable to the owner   of the Bank
305,300
  
282,173
  
264,802
  
254,291
                   
Basic earnings per MYR0.50 ordinary share
128.7 sen
  
124.0 sen
  
112.1 sen
  
112.2 sen
                   

ends/all
 
 
 
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: Ben J S Mathews
 
                                                                                                 Title: Group Company Secretary
                     
                                                                                Date: 18 June 2014