HSBC sees $14.5b of pre-tax profit in 2003

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Last updated at: (Beijing Time) Tuesday, March 02, 2004

HSBC sees $14.5b of pre-tax profit in 2003

The world second largest bank by market value HSBC said in its annual report Monday that its pre-tax profit in 2003 was 7.7 billion pounds or 14.48 billion US dollars.

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The world second largest bank by market value HSBC said in its annual report Monday that its pre-tax profit in 2003 was 7.7 billion pounds or 14.48 billion US dollars.

The profit figure is the highest recorded by a British-based bank and represented a 37 percent increase on 2002, it said.

Its huge profit increase came after it saw a 54 percent rise in turnover to 22 billion pounds or 41.36 billion US dollars, boostedby its takeover of US loan firm Household International.

"Overall, 2003 was a good year for HSBC, " said the bank's chairman John Bond.

He noted the results showed the diversity of the company's business, against a backdrop of improvement in most of the world'smajor economies, saying "we are second to none in terms of geographic and product diversification.".

On a divisional basis, John said the integration of Household International in early 2003 and that of HSBC Mexico (formerly GFBital) had "exceeded our expectations".

"Our performance also benefited from a strong contribution from recent acquisitions, an expanded geographical reach and our continuing investment in new products and services, in systems, and in our people, " he added.

HSBC has 9,500 offices in 79 countries with its headquarters based in London and its shares listed in London, Hong Kong, New York and Paris.

In its personal financial services division, the bank said low interest rates and lower unemployment had fueled increased demand for mortgages and other lending products in many of its markets, but particularly in Britain, the United States, Canada, South Korea and New Zealand.

HSBC said it achieved record results in 2003 in global markets business and increased its market share in bond issuance in Europeand the United States, and maintained its market-leading position in Asia, outside of Japan.

Turning towards 2004, HSBC said it had already seen growth in both consumer spending and borrowing. It predicted improving prospects for economic growth and private sector employment, particularly in the Unites States and Hong Kong.

It was also confident of improving market conditions in such emerging markets as Brazil, Mexico and the Asian nations.

HSBC also put special emphasis on increasing opportunities in Chinese mainland.

HSBC's results came a week after the Royal Bank of Scotland reported its own annual pre-tax profits of 6.2 billion pounds or 11.65 billion US dollars.

Some critics said the boom in banking profits is due to increased consumer borrowing, with big banks pushing credit card and personal loan deals.

Source:Xinhua

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