HSBC reports 9% rise in profit for 2013

HSBC reports 9% rise in profit for 2013

PanARMENIAN.Net - HSBC has reported a 9% rise in profit for last year, boosted by cost cuts as it restructured the business. Reported pre-tax profit was $22.6bn, compared with $20.6bn in 2012, the bank said, according to BBC News.

The bank sold or closed 20 non-strategic businesses last year as it streamlined the business.

"The group today is leaner and simpler than in 2011, with strong potential for growth," said chief executive Stuart Gulliver.

Hong Kong and Asia Pacific were responsible for the bulk of the group's profits.

The banking group said it had cut its full-time staff equivalent numbers by 41,000 to 254,000 over the past three years. Operating expenses also fell by 6% over the year, but the fall was less than analysts had forecast.

HSBC said Gulliver was awarded a total pay package of £8mln for 2013, up from £7.5mln the previous year.

HSBC said it had also increased its bonus pool for staff to $3.9bn last year, a rise of 6% on the year. It also revealed that 239 of its staff had been paid £1mln or more.

The bank also warned that it expected "greater volatility" and "choppy markets" this year.

"Overall, we remain optimistic about the longer-term prospects of emerging markets," it added. Shares fell more than 4% in early trading.

Related links:
 Top stories
“A 10% credit portfolio upsurge was registered in the first 7 months of 2014, with the bank planning to bring the figure to $550M,” Sahakyan said.
The revised figures are based on the forecast for the Russian economy to contract by 1.0% in 2014, followed by stagnation in 2015.
“The key powers in the region are unlikely to favor an outbreak of conflict on their southern and eastern flanks,” the report says.
The Commission aims to compensate producers who decide to not harvest some of their goods or give products away for free.
Partner news