HSBC reported 58% profit increase for the first quarter
The profit of the Europe's largest bank HSBC has increased by 58% in first quarter, due to the lower taxes and lower provisions for bad loans. The main profit of HSBC, however, decreased slightly after the costs for the period increased significantly, while the revenue is decreasing slightly. The HSBC net profit was amounted to 4.15 billion dollars for the first quarter compared with 2.6 billion dollars a year ago. The increase in positive financial result is due largely to lower taxes and increases of the Latest Gold Prices.
However, the profit before tax was amounted to $ 5.5 billion compared with $ 6 billion an year ago. The market expectations were for a higher profit before taxes of $ 6 billion.
The HSBC's revenue decreased slightly to 17.04 billion dollars compared with 17.9 billion dollars last year, mainly due to smaller revenues from consumer lending in the U.S. The aim of the new chief executive Stuart Gulliver of the Bank is to reduce costs to improve profitability of HSBC. In his words, HSBC will seek to improve not only profit from emerging markets, but also from developed markets such as Europe. The growth of HSBC in the first quarter is the strongest in Asia, Latin America and the Middle East, while in Europe, profit before tax have fallen sharply from about 65%, while in the U.S. fell by 60 per cent. The share of cost of revenues of the bank increased to 60.9 percent in the first quarter compared with 49.6 percent a year ago. The increase in operating costs comes as a result of the larger salaries of staff in the investment banking division of HSBC.
HSBC’s profit increased double to 13.2 billion USD
The profits of the Europe's largest bank HSBC Holdings has more than doubled last year as its provisions to cover bad loans decreased substantially. The HSBC's net profit rose to 13.2 billion dollars for 2010 of 5.83 billion dollars for 2009, which was slightly below market expectations. Provisions of the London-based bank to cover bad loans shrink sharply to 14 billion dollars compared with 26.5 billion dollars a year ago. Reserves for problem loans are the smallest since 2006. The HSBC end user credit in the U.S., after the financial crisis need to set aside 58 billion dollars to cover the provision of problem loans. The new CEO of financial giant Stuart Gulliver, who took over management of the bank in January, put the spotlight on revenue from developing economies, especially those from Asia. The shares price of HSBC has barely changed over the last year, which ranks last among banks in the index of European financial companies FTSE 350 Banks. The management of HSBC has reduced the target return on equity of between 12 and 15% compared to existing targets 15-18% because of tight capital requirements for banks.
Lloyds and Standard Chartered with good financial reports
Two more of the leading British banks have shown strong results for first half of 2010. After the best accounts of HSBC and the "bad bank" Northern Rock Asset Management, showed good performance today Standard Chartered and Lloyds Banking Group. Profit before tax of Standard Chartered rose by 10 percent annually for the first half on an annual basis, reaching 3.12 billion dollars. This is a strong result for the financial institution that generates over 80% of their revenues to the Asian market, reports suggests. A key event for the bank in the first half of the year is to raise 537 million dollars from the market in India, was carried listing of depository receipts that can be traded on the exchange. So Standard Chartered became the first foreign company that carried the Indian market. Profits of Lloyds Banking Group for the first six months amounted to 1.6 does billion pounds, which is a significant improvement over last year. Then it was reported a loss of 4 billion pounds. With a major contribution to the good profit of the bank 41 percent owned by taxpayers, is the reduction in appropriations to cover bad debts provisions. They have dropped from 13.4 billion to 6.5 billion pounds.
HSBC profit increased to 5,8 billion USD for 2009
The profits of the largest financial group in Europe - HSBC Holdings PLC, has increased by 2 percent annually and reached 5.8 billion dollars in 2009, the banking giant was able to compensate for large provision for losses from bad credits by the sharp reduction of their operating costs. Profit after tax for HSBC in 2009 amounted to 5.8 billion dollars compared with a positive result of 5.7 billion the previous year. Operating costs reduced by as much as 30 percent annually to 34.4 billion dollars. Meanwhile, HSBC's operating revenues decreased by 11% to 78.6 billion dollars. Earmarked Provisions for bad loans and other credit risks increased from 24.9 billion in 2008 to 26,5 billion dollars last year. Shares of HSBC cheaper by 3.6 percent to 693.7 pence per share on the London Stock Exchange after the bank's profit for 2009 was less than expected 7.8 billion dollar market. At the beginning of this year, HSBC moved its headquarters from London to Hong Kong to be able to benefit from better financial opportunities in emerging Asian economies. The CEO of HSBC Michael Jogegan receive an annual bonus of $ 6 million for 2009, but the bank have stated that it intends to provide the amount to charity.
Categories
- American Companies
- Asian Companies
- Australian Companies
- European Companies
- Half Year Report
- Monthly Report
- Quarter Reports
- Yearly Report
Useful Links
Calendar
Recent Comments
- zaki on Unilever with unexpected high profit
- alam on Unilever with unexpected high profit
- Tailynn on Veolia with a profit jump of 44 percent for the year 2009
- Alina Thornton on AT&T hardly increased its profit in the first quarter
- Darrell Hardaway on Adidas with profit increase with the support of the World Cup