HSBC Bermuda’s net profit rose 3 per cent to $143 million last year.Total operating income before expected credit losses was $281 million, in line with the prior year.The bank said decreases in net interest income were offset by higher net fee income, dealing profits, and gains on financial investments.Change in expected credit losses for 2019 was a $9 million charge, compared to a $3 million release in 2018. The charge was mainly incurred on residential mortgage lending, the bank said. The overall level of impaired loans remained consistent at around $360 million.Total operating expenses decreased by $14 million, or 10 per cent, to $129 million, as a result of lower litigation expenses and prudent cost controls, the bank said. The cost efficiency ratio improved in 2019 to 46 per cent from 51 per cent in 2018.Steve Banner, chief executive officer and director, HSBC Bermuda, said: “The level of expected credit losses for the year was higher than last year but within expectations. Our balance sheet remains conservatively positioned from a capital and liquidity perspective.”He added: “The results for the 2019 financial year demonstrate the resilience of our business in Bermuda. Our revenues remained stable, despite some headwinds, and we managed our costs prudently. “During the year we helped many Bermudian companies gain access to international capital and continued to fulfil our objective of providing international connectivity for Bermuda.”Total assets increased by 4 per cent over the year to $8.38 billion as of December 31, 2019.Total loans and advances to customers were $2.17 billion the end of last year, a fall of 1 per cent from 12 months earlier.Total allowance for expected credit losses as a percentage of total gross loans and advances to customers decreased marginally to 5.6 per cent at December 31, 2019, compared with 5.7 per cent at the prior year end.Total capital adequacy ratio was 24 per cent at year end, a decrease from 26 per cent a year earlier.Mr Banner added: “I was proud to see HSBC’s continued support for the local community. In 2019 our staff contributed over 1,300 hours of volunteering for worthy local causes during company time.“On behalf of the board, I would like to thank all our customers for placing their trust in HSBC and our hard-working employees for their dedication in serving our customers and our community.”