Bank attributes its robust Q3 interest income to volume growth in residential mortgage balances
HSBC Bank Canada capped off its third quarter – which saw the institution launching its Mortgage Centre – with increased income brought about by stronger performances in both its mortgages and deposits.
In its latest data release late last week, the bank reported that its net interest income for Q3 2018 grew by 13.7% year-over-year to reach $332 million. Year-to-date, net interest income was at $957 million, representing 11.4% growth.
HSBC Canada attributed the increases to “volume growth in both lending and deposits within Retail Banking and Wealth Management, in particular residential mortgage balances and personal deposits, and higher loans and advances in Commercial Banking.”
“In addition, we benefited from improved margins as a result of higher interest rates. This was partially offset by lower interest from impaired loans.”
Read more: HSBC Bank Canada to dig further into retail banking
Mortgages contributed significantly to the bank’s retail banking ($193 million, 10.9% y-o-y growth) and wealth management ($552 million, 10.8% y-o-y growth) operations.
“We continued to achieve strong growth in total relationship balances and to grow market share primarily in deposits and mortgages, due to strong branding, innovation and strategic investments to make our bank simpler, faster and better for our clients.”
