LONDON (dpa-AFX) - HSBC Trinkaus & Burkhardt AG, an 80.6% indirectly owned subsidiary of HSBC Holdings plc. (HSBA.L, HBC), said that pre-tax profit for the fiscal year 2013 increased to 219.1 million euros from last year's 217.9 million euros.
Net profit was 155.3 million euros up from 132.0 million euros in 2012. With the exception of Global Banking and Markets (GB&M) all segments reported an improved performance in 2013. GB&M results were lower due to the non-recurrence of extraordinary items in 2012.
Net interest income fell by 5.6% to 165.8 million euros from last year's 175.7 million euros. The improvement in interest income earned on higher volumes in the lending business only partially offset the impact of lower margins earned on surplus funds and interest income from financial assets in the low interest rate environment.
There was a net loan impairment and other credit risk provisions charge of 10.9 million euros in 2013 compared to 0.9 million euros the previous year. The 2013 net charge reflected the combination of individually assessed impairments of 3.8 million euros against a small number of exposures and a net charge of collectively assessed impairments of 7.2 million euros, reflecting the growth in lending volumes.
Net fee income rose by 4.5% to 401.1 million euros from the previous year's 383.7 million euros. The Securities business made the largest contribution, on par with levels recorded for the previous year, despite difficult market conditions. Fee income in the lending business, driven by the bank's participation in a growing number of lead arrangements for large syndicated loans, improved by 8.7 million euros to 23.0 million euros.
The prior year's figures restated. The adjustments to the prior-year figures had to be made in accordance with IFRS and are the result of a change in the reporting of pension plans (IAS 19) as well as changes in the balance sheet.
The 2014 is expected to be a challenging year for HSBC Trinkaus. Through the planned expansion of its business and the improving economic conditions, revenues are intended to grow. However, as part of its strategic initiative, 2014 will see a significant investment in the expansion of the workforce, investment in the IT infrastructure, opening of four further branches in Dortmund, Hannover, Mannheim and Nuremberg as well as the expansion of the Cologne branch which will increase costs considerably.
Copyright RTT News/dpa-AFX