Exposure to non-bank asset-backed commercial paper (ABCP) didn't stop HSBC Bank Canada (TSX:HSB.PR.C) from reporting a 6.6% increase in net income for the year ending December 31, 2007: $530 million compared with $497 million in 2006.
In releasing its income numbers, HSBC cited growth along all of the bank's business lines despite the highly competitive Canadian market for financial services.
The bank's 2007 revenue increased to $1.9 billion from $1.7 billion in 2006.
But HSBC's results were dampened by exposure to the ABCP market, which shrank last August because of the collapse in the market for mortgage-backed securities, which included U.S. sub-prime mortgages. The bank took a $47 million charge related to its ABCP holdings.
HSBC Canada's share price range during the past week: between $23.73 and $24.34; 52-week high: $27.17; 52-week low: $21.76.