HSBC & Bank of America (BoA) report rise in profits

Hong Kong and Shanghai Banking Corporation (HSBC) Ltd's India have reported a 64% rise in net profits at Rs 846 crore for the year ended March 31, 2007. The bank had posted a net profit of Rs 515 crore in the previous year.

In 2006-07, HSBC invested a further Rs 1,437 crore in the bank, comprising of fresh infusion of Rs 904 crore as well as profit retention of Rs 533 crore. This is on top of the Rs 523 crore reinvested in the bank during 2005-06.

The bank’s capital adequacy ratio is 11.06% as on March 31, 2007 as compared to 10.61% in previous year. The total income of the bank rose by 51% to Rs 4,720 crore from Rs 3,130 crore in 2005-06. Total assets increased 47% to Rs 54,987 crore from Rs 37,473 crore in the previous year. During the year, the bank grew its deposits by 40% to Rs 34,825 crore, while advances saw an increase of 38% to Rs 23,142 crore.

Bank of America (BoA) has registered a 35% jump in after-tax profit to Rs 195 crore for the year ended March 31, 2007 in its Indian operations. The bank’s revenues increased by 24% to Rs 674.4 crore during the year. In 2005-06, the bank had increased its revenues by 43% (Rs 170 crore). The bank also reported nil net non-performing assets (NPAs).

Net interest revenue of the bank was up 24% at Rs 249.5 crore in FY07 from Rs 200.5 crore in FY06, as a result of improved margins. The bank’s non-interest revenue rose by 23% at Rs 244.3 crore from Rs 198.3 crore, driven by enhanced revenues from multiple client services.

The bank’s total assets increased by 5.9 per cent to Rs 6,318 crore at the end of March 2007, from Rs 5,965 crore a year earlier, while the investments grew by 13 per cent to Rs 1,886 crore and the advances fell by 10 per cent to Rs 3000 crore from Rs 3,369 crore a year earlier. The bank’s deposits grew by 29 per cent to Rs 2,718 crore from Rs 2,106 crore a year earlier.

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