HSBC sees 40% rise as Irish firms develop markets outside EU

BANKING giant HSBC, which employs 700 people in Ireland, said its corporate banking business here had a good year in 2007 with revenues up 40%.

The bank said the growth in revenues came as more Irish companies sought banking services in developing markets outside the EU.

The bank said it established a private banking business here to meet the demand from high net worth individuals for wealth management services.

“Our corporate and private banking businesses are at the early stages of development; the objective is to grow them in line with the demand within the Irish market for global banking expertise,” HSBC Ireland chief executive Simon Wainwright said yesterday.

“Our fund administration and insurance units are playing a key role in the international growth of these businesses for HSBC. A further challenge will be to develop a strategy that integrates HSBC’s businesses across the Republic and Northern Ireland.”

The London-listed HSBC yesterday reported a 10% rise in pre-tax profits to $24.2 billion, despite writing off $17.2bn from bad debts and investments linked with the credit crunch.

The 63% year-on-year increase in write-offs came as the fallout from the slowing US housing market crisis increased.

The bank said: “The outlook for the rest of 2008 is uncertain. The economic slowdown and the credit outlook in the US may well get worse before they get better.

“With significant parts of the international financial system in developed markets still in difficulties, HSBC’s emphasis on faster growing emerging markets means we are better positioned than many of our competitors.”

HSBC’s North American operation contributed $91 million, or 0.4% of the total group pre-tax profits.