In a year of “major progress” for HSBC, the UK bank reported an increase in profit before tax of 15 per cent per cent on 2010, up to $21.9 billion. While the bank does not give a break-down for Ireland, it reported that it had a ‘successful year’.
The bank reported rising revenues in emerging economies, with revenues up 12 per cent in Asia, Latin America and MENA (middle east and north Africa), which now account for 49 per cent of group revenue. Commercial banking enjoyed a ‘record year’, with profits before tax up by 31 per cent to $7.9 billion, while retail banking and wealth management saw its profits rise by 11 per cent to $4.3 billion.
"2011 was a year of major progress for HSBC. We gained traction in our strategy designed to simplify the structure and improve the management and control of the group, thereby improving returns and positioning HSBC for growth. We recorded a strong performance in faster-growing markets and had a record year in commercial banking. I am pleased with our progress but there is a lot more to do and we remain focused on delivering our targets," said Stuart Gulliver, group chief executive.
As part of the group’s restructuring, it announced the disposal or closure of 16 businesses in 2011, and three to date in 2012. HSBC saw its core tier 1 capital ratio fall to 10.1 per cent, down from 10.5 per cent in 2010, due to the "absorption of Basel 2.5 and credit growth".
In Ireland, where it employs over 400 employees across its four businesses based in Dublin; corporate banking, private banking, securities services and insurance, it had “a successful year", said Stephen Young, chief executive of HSBC Ireland.
“Our corporate bank brought a number of major Irish companies on board as clients and will continue to expand this year. Our other businesses have also continued to prosper. Private bank grew client assets in excess of 35 per cent and our funds administration business has $53 billion under administration and custody in Ireland,” he said.
