HSBC reports profit jump
(2 March 2010 – Europe) HSBC Holdings PLC has reported an increase of two percent of its full-year profit as lower operating costs offset an increase in loan impairment charges.
Europe’s largest bank announced that for the year ending December 31st the bank made an after-tax profit of US$5.8 billion (A$6.4 billion) compared to US$5.7 billion a year earlier.
The bank’s operating expenses fell sharply to US$34.4 billion a 30 percent decline.
Impairment charges on bad loans rose from US$24.9 billion to US$26.5 billion and the bank’s operating income fell 11 percent to US$78.6 billion.
Michael Geoghegan, chief executive officer, said that the improvement was largely driven by stronger results across the bank’s Global Banking and Markets businesses, where the result was exceptional revenues, considerably stronger balance sheet management performance, and a significant decline in writedowns compared with 2008.
It also reflected a significant fall in loan impairment charges in the bank’s U.S. consumer finance portfolios, offset by higher loan impairment charges elsewhere, Mr Geoghegan added.
The bank’s operating expenses fell sharply to US$34.4 billion a 30 percent decline.
Impairment charges on bad loans rose from US$24.9 billion to US$26.5 billion and the bank’s operating income fell 11 percent to US$78.6 billion.
Michael Geoghegan, chief executive officer, said that the improvement was largely driven by stronger results across the bank’s Global Banking and Markets businesses, where the result was exceptional revenues, considerably stronger balance sheet management performance, and a significant decline in writedowns compared with 2008.
It also reflected a significant fall in loan impairment charges in the bank’s U.S. consumer finance portfolios, offset by higher loan impairment charges elsewhere, Mr Geoghegan added.
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