HSBC has posted a profit before tax of
$19.04bn for the 12 months to 31 December, more than double its
profit for the previous year (2009: $7.08bn).

For the first time since 2006, HSBC was
profitable in every business unit and region, including its
previously troubled US retail division.

Having lost $7.74bn in 2009, HSBC’s US
arm posted a profit before tax of $454m.

But at group level, HSBC’s profits do not yet
match pre-crisis earnings; in 2006 and 2007 it posted pre-tax
profits of $22.1bn and $24.2bn respectively.

HSBC’s retail focused Personal Financial
Services unit returned to the black and posted a profit before tax
of £3.52bn; in fiscal 2009 the division lost $2.06bn.

Modest profits growth at HSBC’s European unit
(an increase of 7.3% year-on-year to $4.30bn) was dwarfed by double
digit profit growth elsewhere.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In Hong Kong, HSBC’s profits before tax rose
by 13.1% to $5.69bn; in the rest of the Asia Pacific region,
profits rose by over 40% to $5.90bn. At the bank’s Latin America
and Middle East business units, profits rose by 60% and 96%
respectively.

At group level, total loans increased by 7% to
$958m while deposits increased by 6% to $1.2trn.

HSBC highlights in fiscal 2010 included a near
halving of loan loss provision to $15.1bn from $27.4bn in 2009.

Less positive was a 3.2 percentage point
increase in HSBC’s cost-income ratio from 52% to 55.2%.

Operating expenses of $37.69bn represented a
sharp increase of almost 10%.

Analysts were also lukewarm regarding a 3.2%
decline in net interest income in 2010.

Margin pressure contributed to a 4.9% decline
in profits before tax at HSBC’s Private Banking unit: $1.05bn in
2010 compared with $1.11bn the previous year. Client assets at the
division increased by 6.3% to $390bn.

HSBC retail highlights in 2010 included:

  • HSBC Premier:  the bank’s flagship mass-affluent product;
    customer numbers grew by a net 980,000 clients, to 4.4m;
  • The launch of the HSBC Advance, aimed at prospective
    mass-affluent clients; at year-end, Advance had a customer base of
    4.6m, across 46 markets.
  • UK retail profits before tax more than trebled, to $1.22bn from
    $364m the previous year;

HSBC ended fiscal 2010 as the largest
UK-headquartered bank ranked by assets, overtaking Royal Bank of
Scotland (RBS) and Barclays in the process.

In 2010, HSBC’s total assets increased by 3.8%
to $2.46trn, marginally ahead of Barclays’ total assets of
$2.42trn.

RBS’ total assets declined by 4.5%
year-on-year to $2.35trn.