Bangkok--7 Mar--HSBC
HSBC Holdings reports its profit before tax of US$20.6bn, down 6% on 2011, including US$5.2bn of adverse fair value movements on own debt. Underlying profit before tax US$16.4bn, up 18% on 2011.
There was much to be positive about in HSBC’s performance in 2012. The majority of HSBC’s core businesses in Asia, particularly in Hong Kong, continued to perform well, achieving good underlying revenue growth in the year.
It was a record year in Commercial Banking with reported profit before tax of US$8.5bn, up 7%. The underlying revenues for the Group US$63.5bn, up 7%; Global Banking and Markets US$18.2bn, up 10%; Commercial Banking US$15.9bn, up 8%; Retail Banking and Wealth Management US$27.7bn, up 6%; More than half of the Group’s underlying revenue from faster-growing regions.
The core tier 1 capital ratio strengthened from 10.1% in December 2011 to 12.3% and the Group remains on track to deliver compliance with the more onerous Basel III requirements in the accelerated timetable being sought by UK regulators.
Stuart Gulliver, HSBC Group Chief Executive said: “HSBC made significant progress in 2012. First and foremost, we grew our business. We increased revenues, performed well in most faster-growing markets and enjoyed a record year in Commercial Banking. We’ve made the business easier to manage and control by disposing of non-core businesses and surpassed our sustainable savings target. We also agreed a settlement with the US and UK authorities in respect of our past anti-money laundering and sanctions failings. Based on our current understanding of the capital rules we are extremely well-placed with regard to Basel III compliance, re-establishing our position as one of the best capitalised banks in the world. This provides a firm base on which to keep growing the business organically and allows us to increase dividends to US$8.3bn.”
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