The net profits of HSBC Bank sank 16.5 percent to $14.03 billion in 2012, hit by US money-laundering fines, mis-selling scandals, rising taxation and a huge accounting charge.
The profit after tax fell to an amount equivalent to 10.78 billion euros last year, compared to $16.8 billion in 2011, London-headquartered HSBC said while unveiling its statement. Meanwhile, the pre-tax profits of the bank slid six percent to $20.65 billion.
HSBC's performance was hit by a $1.9-billion fine to settle US allegations of money laundering that were said to have helped Mexican drug cartels, terrorists and Iran.
HSBC's annual results were spoiled by a vast $5.2-billion charge against the value of its own debt and it set aside another $1.4 billion to cover compensation in Britain for mis-selling scandals.
Pretax profit from its commercial banking increased 7 percent to $8.5 billion.
A 41 percent drop in loan-impairment charges at the consumer banking and wealth-management unit helped pretax profit rise to more than double to $9.58 billion.
The bank’s underlying revenues for the group rose 7 percent to $63.5 billion, global banking and markets 10 percent to $18.2 billion, commercial banking 8 percent to $15.9 billion, retail banking and wealth management 6 percent to $27.7 billion, more than half of the Group’s underlying revenue from the faster-growing regions.
However, the lender's capital position improved following a string of asset sales, including its stake in Chinese insurance giant Ping An. As a result, the bank pledged to pay out more in shareholder dividends this year.
HSBC said it would increase dividend payments to $8.3 billion, or 45 cents per share, a 10 percent boost from last year.
The bank planned to raise the first three interim dividends for 2013 to $0.10 for each of the ordinary shares, a 11 percent further from the previous year.
Daily Sun Bangladesh