HSBC reports £13.8bn profits

Rapid growth in Asia and a resilient performance in the UK helped drive profits of £13.8bn (€16.3bn) at HSBC today.

Profits rose 15% to $21.9bn, which is among the biggest ever reported by a British company and close to its record of $24bn set in 2007.

The banking giant, which makes an estimated 90% of its money outside Britain and has benefited from its exposure to emerging markets in Asia, said UK pre-tax profits rose 17.2% to £1.5bn.

Chief executive Stuart Gulliver is to be awarded a total pay package of up to £6.7m for 2010 as his £2m salary and allowances will be boosted by a £2.2m bonus and other long-term incentives.

The final element will be in shares and cannot be sold until he retires or leaves HSBC.

HSBC’s performance was lifted by a 12% rise in revenues in Asia, Latin America and the Middle East and North Africa, which now account for 49% of its revenues, while its commercial banking arm enjoyed record pre-tax profits of $7.9bn, up 31% on the previous year.

It comes after state-backed Lloyds and Royal Bank of Scotland reported hefty losses, while Barclays reported a fall in profits.

Mr Gulliver said 2011 was “a year of major progress for HSBC”.

He said: “We recorded a strong performance in faster-growing markets and had a record year in commercial banking.

“I am pleased with our progress but there is a lot more to do and we remain focused on delivering our targets.”