Mumbai: The Hong Kong and Shanghai Banking Corporation''s (HSBC) Indian branches have witnessed a 34% rise in profit to $529 million in 2007 as against $393 million in 2006. This is the first time the Indian operation has crossed the $500 million mark in profits. India is among the top-10 contributors to global profits. The bank has retained the 2007 profits, which had boosted the bank''s capital base to $2 billion.
The rise in profits is mainly due to the growth in the global banking and makets business and commercial banking business, which includes middle market enterprises and small and medium enterprises and other businesses, including asset management, insurance and global resources. The bank''s personal financial services (retail banking operations) reported a loss of $70 million as on December 31, 2007, as against a loss of $24 million on December 31, 2006. The loss was recorded due to planned investment in growing consumer finance business and higher loan impairment charges. The personal lending portfolio, excluding mortgages, grew by 67 per cent during 2007. Mortgage balances rose by 27 per cent, benefiting from increased marketing and direct sales efforts. By the end of 2007, the bank had around 2.7 million credit cards in circulation in India.
Global banking and markets business and the commercial banking business witnessed a 54 per cent increase in profit to $429 million and 91 per cent increase in profit to $88 million respectively. Loans and advances to customers increased 46.89 per cent to $7,220 million in December 2007 as against $4,915 million in December 2006. Customer accounts increased to 51.47 per cent to $12,021 million as compared to $7,936 million. In India, current account and deposit balances increased by 40 per cent, partly from liquidity chasing new initial public offerings.
The rise in profits is mainly due to the growth in the global banking and makets business and commercial banking business, which includes middle market enterprises and small and medium enterprises and other businesses, including asset management, insurance and global resources. The bank''s personal financial services (retail banking operations) reported a loss of $70 million as on December 31, 2007, as against a loss of $24 million on December 31, 2006. The loss was recorded due to planned investment in growing consumer finance business and higher loan impairment charges. The personal lending portfolio, excluding mortgages, grew by 67 per cent during 2007. Mortgage balances rose by 27 per cent, benefiting from increased marketing and direct sales efforts. By the end of 2007, the bank had around 2.7 million credit cards in circulation in India.
Global banking and markets business and the commercial banking business witnessed a 54 per cent increase in profit to $429 million and 91 per cent increase in profit to $88 million respectively. Loans and advances to customers increased 46.89 per cent to $7,220 million in December 2007 as against $4,915 million in December 2006. Customer accounts increased to 51.47 per cent to $12,021 million as compared to $7,936 million. In India, current account and deposit balances increased by 40 per cent, partly from liquidity chasing new initial public offerings.
No comments:
Post a Comment