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Commercial arm helps HSBC to £13.8bn profit 27 February 2012

HSBC’s record year for its Commercial Banking team contributed to pre-tax profits of £13.8bn (US $21.9bn) for 2011, up 15 per cent on the same 12 months in 2010.

The bank’s global Commercial Banking team made pre-tax profits of £4.98bn (US $7.9bn), up 31 per cent on the £3.84bn (US $6.09bn) declared the previous year.

Operating income from HSBC’s UK operations rocketed for the full year of 2011, rising to £8.79bn (US $13.94bn) from the £7.23bn (US $11.47bn) declared for the same period in 2010.

Pre-tax profits for the global Retail Banking & Wealth Management division were up for the full year from £2.42bn (US $3.84bn) to £2.69bn (US $4.27bn).

The group’s global Retail Banking division had to increase provision for bad loans in the second half of 2011, however.

Loan impairment and credit risk provision for the six months to the 31 December 2011, rose from £3.12bn (US $4.9bn) in 2010 to £3.18bn (US $5bn) for the same period this year.

However, the division’s provision for the full year was actually down from £7.10bn (US $11.26bn) in 2010 to £5.87bn (US $9.32bn) for the full year of 2011.

The bank declared total European assets of £787.9bn (US $1,249.5bn) set against total liabilities of £750.4bn (US $1,189.9bn).

Stuart Gulliver, group chief executive of HSBC, said 2011 was a ‘major year of progress’ for the group, noting that the group had worked hard to reposition the business.

He added: “We gained traction in our strategy designed to simplify the structure and improve the management. We recorded a strong performance in faster-growing markets and had a record year in Commercial Banking.”



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