HSBC Profits down, but not out
(4 March 2009 – UK) In market of big losses, UK banking giant HSBC has seen 2008 profits fall by 70 percent, but still managed to be in the positive, with a net profit of US$5.73 billion (A$8.98 billion).
Net Profits attributable to shareholders fell by 70 percent from US$19.13 billion (A$29.98 billion) in 2007, which has led HSBC to reveal that it needs nearly US$18 billion (A$28.53 billion).
HSBC managed to remain profitable through a diversified business model, with losses only seen in North America and in the Personal Financial Services unit.
The North American market was a significant hit to the bank, with a yearly loss of US$15.53 billion, down from a small profit in the previous year.
Europe continues to be the biggest earner for HSBC, and expanded in profitability over the year. Pre-tax profit was up 24 percent to US$10.9 billion.
Despite the global financial crisis, particularly good growth was seen in emerging markets for HSBC.
In China, profit before tax was US$1.6 billion, up 25 percent, in India profit before tax was US$666 million, up 26 percent and in the Middle East profit before tax was US$1.7 billion, up 34 percent.
Asia (excluding Hong Kong) was the second biggest earner for HSBC, overtaking Hong Kong, to earn the bank US$6.5 billion.
By business units, Personal Financial Services was the only unit to take a loss, with a pre-tax loss of US$10.97 compared to a profit last year of US$5.9 billion.
Commercial Banking was up slightly, to record a pre-tax profit of US$7.19 billion.
HSBC managed to remain profitable through a diversified business model, with losses only seen in North America and in the Personal Financial Services unit.
The North American market was a significant hit to the bank, with a yearly loss of US$15.53 billion, down from a small profit in the previous year.
Europe continues to be the biggest earner for HSBC, and expanded in profitability over the year. Pre-tax profit was up 24 percent to US$10.9 billion.
Despite the global financial crisis, particularly good growth was seen in emerging markets for HSBC.
In China, profit before tax was US$1.6 billion, up 25 percent, in India profit before tax was US$666 million, up 26 percent and in the Middle East profit before tax was US$1.7 billion, up 34 percent.
Asia (excluding Hong Kong) was the second biggest earner for HSBC, overtaking Hong Kong, to earn the bank US$6.5 billion.
By business units, Personal Financial Services was the only unit to take a loss, with a pre-tax loss of US$10.97 compared to a profit last year of US$5.9 billion.
Commercial Banking was up slightly, to record a pre-tax profit of US$7.19 billion.
Subscribe