HSBC strong in Australia
(5 August 2009 – Australia) HSBC Bank Australia has reported solid growth in profit for the first half of the year, reporting a nine percent rise in pre-tax profit despite the tough environment.
HSBC Australia has reported an increase in its profit before tax by nine percent to A$119 million in the first half of 2009, compared with A$109 million in the first half of 2008.
While relatively small compared to the global banking giant of a parent company, which recorded profit of US$5 billion, the Australian operations did well to increase profits, whereas globally, HSBC profits halved from US$10.2 billion a year earlier.
Paulo Maia, chief executive officer of HSBC Bank Australia said that economic uncertainty in the first half of 2009 saw more customers drawn to HSBC as a result of its global financial strength, relationship banking and access to global products and services.
HSBC in Australia achieved revenue growth of 22 percent. Maia said that this was despite an increase in loan impairment charges, the trend for deleveraging and slowing demand for credit seen in the market.
In HSBC’s three main business units, profit was skewed towards the global markets business. Personal Financial Services profit before tax was A$17 million, Commercial Banking profit was A$13 million and Global Banking and Markets profit before tax was A$85 million.
Only in the Commercial Banking division did HSBC achieve a fall in profits, dropping from A$32 million for the first half of 2008.
Commercial Banking experienced increased loan impairment charges in the small to medium enterprise sector in the first half of 2009.
In the Global Banking and Markets businesses, HSBC indicated that record profits were boosted by increased market penetration among corporates and institutions, providing them with foreign exchange, rates, credit and structured derivatives.
HSBC’s also became the number one issuer of public domestic bonds and a leading issuer of Australian international bonds in the first half of 2009, the bank said.
While relatively small compared to the global banking giant of a parent company, which recorded profit of US$5 billion, the Australian operations did well to increase profits, whereas globally, HSBC profits halved from US$10.2 billion a year earlier.
Paulo Maia, chief executive officer of HSBC Bank Australia said that economic uncertainty in the first half of 2009 saw more customers drawn to HSBC as a result of its global financial strength, relationship banking and access to global products and services.
HSBC in Australia achieved revenue growth of 22 percent. Maia said that this was despite an increase in loan impairment charges, the trend for deleveraging and slowing demand for credit seen in the market.
In HSBC’s three main business units, profit was skewed towards the global markets business. Personal Financial Services profit before tax was A$17 million, Commercial Banking profit was A$13 million and Global Banking and Markets profit before tax was A$85 million.
Only in the Commercial Banking division did HSBC achieve a fall in profits, dropping from A$32 million for the first half of 2008.
Commercial Banking experienced increased loan impairment charges in the small to medium enterprise sector in the first half of 2009.
In the Global Banking and Markets businesses, HSBC indicated that record profits were boosted by increased market penetration among corporates and institutions, providing them with foreign exchange, rates, credit and structured derivatives.
HSBC’s also became the number one issuer of public domestic bonds and a leading issuer of Australian international bonds in the first half of 2009, the bank said.
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