Global banking giant HSBC Holdings Plc today posted a 28% jump in its net profit at $16.79 billion for the year ended December 31, driven by robust performance of emerging markets, including India.
The Asia-focused bank had a net profit of $13.15 billion in 2010.
Net interest income, main source of revenue, grew to $40.66 billion for the year ended December 31, 2011, from $39.44 billion in 2010, HSBC said in a statement.
"2011 was a year of major progress for HSBC. We gained traction in our strategy designed to simplify the structure and improve the management and control of the Group, thereby improving returns and positioning HSBC for growth," HSBC Group Chief Executive Stuart Gulliver said.
In terms of geographical analysis, HSBC's profit from Asia Pacific region surged to $7.47 billion in 2011 from $5.9 bilion in 2010, Hong Kong grew to $5.82 billion from $5.69 billion and profit from Europe increased to $4.67 billion from $4.3 billion in 2010.
"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," he added.
The UK-based bank has recorded strong performance in faster-growing markets as revenue up 12% in Asia, Latin America and West Asia and North Africa which now account for 49% of overall revenue.
"We achieved strong revenue growth in key markets, including mainland China, India, Malaysia, Brazil and Argentina, driving increases in profit before tax," the company said.
HSBC's loan impairment charges and other credit risk provisions were $12.12 billion in 2011 which was $1.91 billion lower than 2010.
As per sectoral analysis, the group posted 31% growth in profit before tax at $7.9 billion in the commercial banking division and retail banking and wealth management profit before tax stood at $4.3 billion, up 11%.
"In 2011 in our heartland of Asia, throughout the West Asia and in Latin America, we made good progress in developing customer business in line with the risk appetite endorsed by the Board. Largely driven by growth in lending in these faster-growing regions, our commercial banking business delivered a record performance.
"In Europe and the US we concentrated on supporting our core customer base, targeting trade services while constraining risk appetite within the financial sector. We also made significant further progress in working down our exit businesses in the US," Gulliver added.
