In an overview of the results published on Wednesday, the bank announced recorded net income attributable to common shares of CAD155mn for the quarter ended 31st March 2008 - an increase of CAD16mn, or 11.5% from CAD139mn for the first quarter of 2007.

Compared to the fourth quarter of 2007, net income attributable to common shares was CAD44mn, or 39.6% higher in the first quarter of 2008.

Results for the quarter ended 31st December 2007 were impacted by a charge of CAD27mn, after related income taxes, with regard to the bank’s holdings of Canadian non-bank sponsored Asset Backed Commercial Paper.

Excluding this charge, net income attributable to common shares in the quarter ended 31st March 2008 was 12.3% higher than the fourth quarter of 2007.

Commenting on the results, Lindsay Gordon, President and Chief Executive Officer, observed that:

"HSBC Bank Canada has made a satisfactory start to 2008 in light of a difficult market. Uncertain conditions continue to affect the banking industry resulting in a reduction in interest margins, although trading revenues have increased due to market volatility. Despite the economic uncertainty, our customer franchise remains very strong and drives the majority of our revenue streams."

"The impact of our brand building activities, including HSBC’s recent advertising campaign at Toronto’s Pearson International Airport, together with our customer focused service propositions, is demonstrated by the success of our Direct Savings Account and the continued growth in the number of HSBC Premier Customers."

"For the remainder of 2008, we will focus on increasing our customer base by continuing to enhance our HSBC Premier and HSBC Direct customer service propositions while growing our commercial business in a focused manner consistent with economic uncertainty."