Residential mortgages skyrocket for HSBC USA

CNY Business Journal (1996+), May 18, 2001

HSBC USA, Inc. saw a significant increase in volume of residential mortgage lending during the quarter ended March 31, as a result, said the company, of the high level of refinaricing activity as interest rates moved lower during the first quarter. HSBC Mortgage Corporation, a subsidiary of HSBC Bank USA, closed $1.3 billion in mortgages during March. This compares to $6.4 billion in mortgages closed for all of 2000. Approximately 40 percent of this volume will be held in the bank's loan portfolio, with the remaining volume sold while retaining the servicing.

HSBC USA recorded net income of S 181 million in the first quarter of 2001, up 20.7 per cent from $150 million in the first quarter of 2000. Cash earnings for the quarter were S222 million, an increase of 18.1 percent compared to $188 million for the comparable period in 2000.

Total assets at March 31 were $84.5 billion, compared to $84.0 billion at March 31, 2000. Total deposits were $57.7 billion, up 5.5 per cent from $54.7 billion at March 31, 2000, and compared to $56.0 billion at Dec. 31, 2000. Total loans were $41.0 billion, up 4.7 per cent from $39.2 billion at March 31, 2000, and compared to $40.4 billion at Dec. 31, 2000.

HSBC Bank USA launched an Internet banking product in April 2000. As of March 31 this year, more than 115,9000 customers had registered for the service, up from approximately 80,000 at yearend, and the site was receiving in excess of 25,000 visits daily.

Revenues were up 13.2 per cent in the first quarter of 2001, compared to the first quarter of 2000. Net interest income increased, principally as a result of a higher level of loans and core deposits. Common equity was $6.8 billion at March 31, compared to $6.7 billion at March 31, 2000.