HSBC annual profits grow to £13.8 billion

HSBC’s annual profits grew 15% to £13.8 billion ($21.9 billion) in what it called a year of “major progress”.HSBC annual profits grow to £13.8 billionThe bank is the biggest in Europe and makes about 90% of its profits outside the UK.

HSBC’s UK profits were 17.2% higher than last year at £1.5 billion.

The bank singled out its “strong performance” in faster-growing markets, with revenue up 12% in Asia and Latin America, as well as in the Middle East and North Africa.

It said these regions now accounted for 49% of group revenue. It also said 2011 was a record for commercial banking.

Profit before tax in that division was up 31% at almost £5 billion.

Also helping the headline profit figure was a rise of £2.5 billion in the value of its debt.

The investment banking division fared less well. Profits there fell 24% to £15 billion as a result of the eurozone crisis.

The UK division met its Project Merlin lending targets, set by the government.  It lent £49.4 billion to businesses, well above its target of £38.8 billion, with £11.9 billion going to small and medium-sized enterprises (SMEs).

HSBC also increased mortgage lending by 12% to £13.2 billion and expects to increase that to £15 billion this year, with £3 billion earmarked for first time buyers.

Like other UK banks, HSBC has faced claims over mis-sold payment protection insurance – policies which were sold to maintain loan repayments in the event of illness or redundancy.

But in many cases, the insurance was sold to those who were not appropriate customers for the product.  The bank said it was “truly sorry” to those adversely affected by “our failings”.

March 29, 2012  Tags: , , , , , ,   Posted in: Business Finance, Business Growth, Business Profits, Business Win, Global Business, Growing Businesses, Professional Services, Uncategorized, Winning Business

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