April 22, 2024

HSBC Group on Wednesday posted a 19 per cent year-on-year increase in pre-tax profit from its India operations to $1.51 billion in the financial year ended December 2023, due to healthy contributions from commercial banking and global banking and markets verticals. Indian operations had posted a profit of $1.27 billion in 2022.

In contrast, China’s pre-tax profit plummeted 89 per cent year-on-year to $371 million in 2023 from $3.40 billion in 2022, due to losses the bank suffered in its wealth management, personal banking and corporate centre verticals.

HSBC, in a statement, said it has continued to diversify profit generation geographically across multiple markets. “The positions that we have as a leading foreign bank in mainland China, India, Singapore, the United Arab Emirates, Saudi Arabia and Mexico – all of which are also well connected to our international network – mean we are well placed to capture opportunities in these fast-growing economies”. This was again evident as they all reported profits significantly in 2023, with India and Singapore each contributing in excess of $1 billion of profits to the Group.

Global financial powerhouse HSBC aims to continue growing its wholesale franchise by taking advantage of corporate supply chains in India, as per its annual report.

The bank is also tapping into the wealth pools of the Indian diaspora with the launch of onshore Global Private Banking, it said.

HSBC, which has 42,000 employees in its India operations, said the economies of South and Southeast Asia will carry good economic momentum into 2024.

“India and Vietnam are currently among the fastest-growing economies in the world, benefiting from competitive labour costs, supportive policies, and changing supply chains,” it said.

Chinese companies are among those increasingly looking towards these and other markets, as China’s economic transformation towards high-quality growth and domestic consumption continues, HSBC said.

First Published: Feb 22 2024 | 12:05 AM IST