Record profits at HSBC

HSBC has announced 2004 profits of 9.18 billion, the largest ever recorded by a UK-based bank.

16:06 28 February 2005

HSBC has announced 2004 profits of 9.18 billion, the largest ever recorded by a UK-based bank.

Its annual profit rose 35 per cent, boosted by an increase in consumer borrowing and income from trading currencies and fixed income.

The London-based bank reported that net income rose to $11.84 billion, or $1.07 a share, from $8.77 billion, or 83 cents - slightly above analysts' estimates.

The HSBC results represent the biggest company profit ever recorded by a British-based company outside the oil sector and are well above the 8.1 billion profit reported by Royal Bank of Scotland last week.

Chairman John Bond, 63, is expanding in developing markets such as India and China in a bid to counter the effects of falling lending margins and higher loan loss provisions.

Sir John said it had been "another good year" for the bank, adding: "The UK continued to enjoy high levels of employment and, while property prices softened, the market remained resilient.

"Indeed, buoyant domestic housing markets were a significant factor in most economies where they contributed to continued economic activity by bolstering consumer confidence and releasing equity to fund spending growth."

Shares of HSBC gained 0.1 per cent last year, the second-worst performers on the ten-member FTSE 350 banks index. HSBC generates only about 20 per cent of its earnings from the UK.