HSBC Holdings FY profit before tax jumps 141 percent
Staff Writer |
HSBC Holdings reported late a significant growth in fiscal 2017 profit, reflecting higher revenues and the absence of loss related to disposed-of operations in Brazil.
Article continues below
The company noted that all of its global businesses grew adjusted profits and three main global businesses generated improved adjusted revenue. Further, the company maintained its dividend.
For the year, profit before tax surged 141 percent to $17.17 billion from last year's $7.11 billion. The prior year results reflected a loss on sale and trading results of the operations in Brazil that was sold on July 1 2016.
Profit attributable to ordinary shareholders of the parent company climbed to $9.68 billion from $1.30 billion last year. Basic earnings per share surged to $0.48 from $0.07 a year ago.
Adjusted profit before tax was $21 billion, compared to $18.93 billion lat year, as revenue growth and lower LICs more than offset higher adjusted operating expenses.
The company noted that Asia again contributed a substantial proportion of the profits, particularly in Commercial Banking and Retail Banking and Wealth Management.
Revenue was $51.45 billion, up 7 percent from $47.97 billion a year ago, in part due to adverse fair value movements on own debt in 2016, which are now reported in other comprehensive income. Adjusted revenue rose 5 percent to $51.52 billion, primarily driven by higher revenue in three main global businesses.
Reported Loan impairment charge and other credit risk provisions or LICs of $1.8 billion were 48 percent lower, in part reflecting the impact of the sale of operations in Brazil in 2016.
The company said it delivered growth from international network with a 6 percent increase in transaction banking product revenue and a 13 percent rise in revenue synergies between global businesses compared with 2016.
Net interest income dropped to $28.18 billion from last year's $29.81 billion. Net fee income grew to $12.81 billion from $12.78 billion a year ago. Net trading income declined from the prior year. ■