HSBC Bermuda posted net profit of $139 million for last year — down by $1 million from 2017, after one-off items were stripped out.

The bank said that total operating income before loan impairment charges was $280 million, consistent with 2017. Increases in net interest income and fee income were offset by lower investment portfolio gains.

Operating expenses increased by $4 million, or 3 per cent, to $143 million. The increase was due to investment in systems and regulatory programmes, as well as the non-recurrence of an insurance recovery in 2017, the bank said. The cost efficiency ratio in 2018 remained comparable to 2017 at around 51 per cent.

HSBC Bermuda added that the change in expected credit losses for 2018 of a $3 million release was due to a number of recoveries on previously written-down loans.

The overall level of impaired loans remained consistent at around $360 million.

Total loans and advances to customers were $2.19 billion at 31 December 2018, down 4 per cent from the end of 2017.

The bank said its total allowance for expected credit losses as a percentage of total gross loans and advances to customers decreased to 5.7 per cent at the end of 2018, compared to 6.4 per cent a year earlier.

Total assets of $8.08 billion at the end of 2018 were down 11 per cent compared with the prior year end.

HSBC Bermuda’s capital adequacy ratio was 26 per cent at December 31, 2018, an increase from 22 per cent at the prior year-end.

Steve Banner, chief executive officer and director of HSBC Bermuda, said: “These financial results demonstrate the ongoing strength of the business here in Bermuda.

“Our revenues were stable, our balance sheet remains conservatively positioned and our capital and liquidity metrics continue to provide capacity for growth.

“HSBC seeks to help local customers achieve their goals and aspirations, and connects the Bermudian economy to the rest of the world.

“We invest in our people, and during the past year more than 250 overseas trips were undertaken by employees so they could attend training, participate in events and/or gain valuable work experience in other HSBC locations.

“We also invest in our community, through various volunteering and charitable initiatives, and through the sponsorship of community events such as the Agricultural Show, the Christmas Boat Parade and, of course, Cup Match.

“On behalf of the HSBC Bermuda Board and Executive team, I thank our customers for their ongoing loyalty and commitment and our employees for their continued dedication in what has been a successful year.”