HSBC reports 6 per cent fall in profits

BANKING giant HSBC today reported a 6 per cent drop in full-year profits to 20.6 billion US dollars (£13.7bn).

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

The banking group makes an estimated 90 per cent 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 £2m as part of a total pay and benefits package worth £7.4m.

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

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.