HSBC Bank Canada profit fell nearly 9 per cent in the first quarter of 2019 despite growing revenues, as its chief executive sounded a note of caution over economic headwinds.
Yet the country's seventh-largest bank by assets also increased operating expenses by 3 per cent to $328-million, as it makes investments in a bid to increase its business in Canada."We are off to a solid start to 2019 with strong revenue growth in all three of our business lines," said Sandra Stuart, president and CEO of HSBC Bank Canada, in a statement.
HSBC Bank Canada also announced a final dividend of $180-million on its common shares for 2018, and a first interim dividend of $80-million for 2019, to be paid by June 30. Expected credit losses eased in the first quarter, with HSBC Bank Canada recovering $12-million that had been set aside to cover loans at risk of going bad, due mostly to an improved outlook for some customers in the energy service sector. A year ago, the bank had $28-million in recoveries on accounts in the oil and gas sector.