HSBC 2013 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2013 HSBC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

1
Annual Report and Accounts 2013
HSBC BANK CANADA
Headlines
– Profit before income tax expense was $934m for the
year ended 31 December 2013, a decrease of 9.2%
compared with 2012.
– Profit attributable to common shareholders was
$616m for the year ended 31 December 2013, a
decrease of 9.8% compared with 2012.
– Return on average common equity was 14.5% for the
year ended 31 December 2013 compared with 16.6%
for 2012.
– The cost efficiency ratio was 49.5% for the year ended
31 December 2013 compared with 48.4% for 2012.
– Total assets were $84.3bn at 31 December 2013
compared with $80.7bn at 31 December 2012.
– Total assets under administration increased to
$21.4bn at 31 December 2013 from $19.5bn at
31 December 2012.
– Common equity tier 1 capital ratio was 11.0%, the
tier 1 ratio was 13.2% and the total capital ratio
was 15.0% at 31 December 2013, determined using
regulatory guidelines in accordance with the Basel II
and Basel III capital adequacy frameworks adopted
with effect from 1 January 2013.
Basis of Preparation of Financial Information
HSBC Bank Canada (‘the bank’, ‘we’, ‘our’) is an
indirectly wholly-owned subsidiary of HSBC Holdings
plc (‘HSBC Holdings’). Throughout Management’s
Discussion and Analysis (‘MD&A’), the HSBC Holdings
Group is defined as the ‘HSBC Group’ or the ‘Group’.
The MD&A is dated 21 February 2014, the date that our
consolidated financial statements and MD&A for the year
ended 31 December 2013 were approved by our Board of
Directors (‘the Board’).
The bank has prepared its consolidated financial
statements in accordance with International Financial
Reporting Standards (‘IFRS’) and accounting guidelines
as issued by the Office of the Superintendent of Financial
Institutions Canada (‘OSFI’), as required under Section
308(4) of the Bank Act. The information in this MD&A
is derived from our consolidated financial statements
or from the information used to prepare them. The
abbreviations ‘$m’ and ‘$bn’ represent millions and
billions of Canadian dollars, respectively. All tabular
amounts are in millions of dollars except where
otherwise stated.
The references to ‘notes’ throughout this MD&A
refer to notes on the consolidated financial statements
for the year ended 31 December 2013.
Table of Contents
2 Message from the President and
Chief Executive Officer
3 Management’s Discussion and Analysis
3 Financial summary
4 Use of non-IFRS financial measures
5 Who we are
5 Our purpose and strategic priorities
7 Financial performance
11 Movement in financial position
12 Global lines of business
18 Fourth quarter 2013 financial
performance
22 Summary quarterly performance
23 Economic outlook for 2014
24 Critical accounting policies
26 Changes in accounting policy
during 2013
27 Future accounting developments
27 Off-balance sheet arrangements
28 Disclosure controls and procedures and
internal control over financial reporting
29 Related party transactions
30 Risk management
50 Factors that may affect future results
52 Capital
54 Dividends
55 Statement of Management’s Responsibility
for Financial Information
56 Independent Auditors’ Report
57 Consolidated Financial Statements
63 Notes on the Consolidated Financial Statements
121 HSBC Group International Network
121 HSBC Bank Canada Subsidiaries
122 Executive Committee
122 Board of Directors