HSBC Malaysia profit up 20% to $67mln

Domestic demand in banking and sustained growth in regional markets prop up net profit increase.

HSBC Bank Malaysia Bhd posted a 20.15% rise in net profit to RM 221.44 million ($66.74 million) for the quarter ended March 31 from a year ago.

This was achieved as operating income and trading profits grew following an economic recovery.

Revenue, however, fell marginally to RM 785.20 million ($236.68 million) for the quarter compared with RM790.70 million ($238.34 million) a year ago.

HSBC Malaysia deputy chairman and CEO Mukhtar Hussain said the results mirrored the gradual economic recovery, with underlying support from strengthening domestic demand and continued improvement in regional markets.

"With ample liquidity and improved investor and consumer sentiment, we saw capital market activities gradually returning to pre-financial crisis levels and demand for credit increasing," he said in a statement Friday.

HSBC Malaysia's operating income grew 8.2% compared with a year ago mainly due to higher trading profits, net fee income and income from Islamic banking.

View the full story in the Star.