HSBC reports 6% fall in profits

Mar 4 2013

Banking giant HSBC has reported a 6% drop in full-year profits to 20.6 billion US dollars (£13.7 billion).

The figure, which comes despite HSBC's record fine of 1.9 billion US dollars (£1.2 billion) to settle a US investigation into money-laundering, was below City forecasts of around £23.4 billion US dollars (£15.6 billion).

The banking group makes an estimated 90% of its money outside Britain and has benefited from its exposure to emerging markets in Asia.

Chief executive Stuart Gulliver received a bonus of just under £2 million as part of a total pay and benefits package worth £7.4 million.

The overall figure, which compares with £8 million a year earlier, includes his base salary of £1.25 million, around £1.2 million of benefits including pension entitlement, plus long-term share incentive awards worth £3 million.

Mr Gulliver's bonus payment will be deferred and subject to possible clawback, while he will not be able to cash it in until he retires from or leaves HSBC.

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