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HSBC Malaysia unit incurs bigger loss in 1999

KUALA LUMPUR: HSBC Holdings Plc's Malaysian unit, HSBC Bank Malaysia Bhd reported a group net loss of 476.70 million ringgit for the year ended December 31, 1999 compared with a loss of 336.19 million in the previous year.

Loss per share was 227.3 cents in 1999 against 168.1 cents in 1998.

The loss came on the back of loan loss and provision of 982.56 million ringgit, against 1.08 billion in 1998, and staff cost and overheads totalling 492.32 million ringgit, compared with 447.66 million previously.

There was no taxation charge due to the non-taxability of income in 1999.

The results were published on Sunday.

Net interest income was 660.30 million ringgit in 1999 against 748.96 million in 1998.

HSBC Bank Malaysia said its net non-performing loans at the end of 1999 stood at 11.9 percent of total loans, compared with 9.6 percent at end-1998.

Loans totalled 11.94 billion ringgit in 1999 against 14.99 billion in the previous year, while total assets stood at 22.52 billion ringgit against 23.26 billion a year earlier.

The bank said that as at the end of 1999, the amount of foreign exchange and interest rate related contracts which were not hedged and hence, exposed to market risk, was 299 million ringgit compared with 246 million at end-1998.

The bank's risk-weighted capital ratio stood at 10.9 percent against 10.4 percent in the previous year, it said.-Reuters