HSBC announces profits up 18pc

Nia Williams

March 4, 2013

The report also said pretax profits fell by 6% year on year to £13.7bn but underlying profits, which ignore one-time accounting effects, were up 18%.

On a group level the bank reported a notable increase in residential mortgage lending. In 2012 it:

• Provided £16.4bn in gross new mortgage lending, a 24% increase on 2011 (£13.2bn)

• Approved £19.5bn to UK mortgage borrowers, a 20% increase on 2011 (£16.2bn)

• Approved £5bn to UK first-time buyers, a 32% increase on 2011 (£3.8bn)

• Helped 177,000 borrowers including 40,500 FTBs – approving loans to 111 FTBs per day

• Approved 4 in 5 FTB mortgage applications

• New UK mortgage approvals market share of 13.6%, up from 11.6% in 2011

Stuart Gulliver, group chief executive, said:”HSBC made significant progress in 2012.

“First and foremost, we grew our business. We increased revenues, performed well in most faster-growing markets and enjoyed a record year in Commercial Banking.

“We also agreed a settlement with the US and UK authorities in respect of our past anti-money laundering and sanctions failings.”

HSBC had been fined US$1.9bn for its anti-money laundering and sanctions failings last year.

Gulliver continued: “Based on our current understanding of the capital rules we are extremely well-placed with regard to Basel III compliance, re-establishing our position as one of the best capitalised banks in the world.

“This provides a firm base on which to keep growing the business organically.”

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