HSBC in choppy waters globally; Bangladesh operations still cruising
HSBC Bangladesh's profits soared 16 per cent last year on the back of higher interest income although its parent company's takings tumbled.
"This is another year of progress and a great achievement for HSBC Bangladesh," Francois de Maricourt, chief executive officer of HSBC Bangladesh, told The Daily Star.
The local operations of the London-based Asia-focused international bank's profit-after-tax stood at Tk 491 crore, up from Tk 445 crore a year earlier, it said in a statement.
"Our local results reflect profits up 16 per cent, twice the country's GDP growth. This is another testament of the hard work and dedication of our team and we would like to thank our customers and stakeholders for whom we exist."
Net interest income rose 19.2 per cent year-on-year to Tk 972.96 crore.
Profit-before-tax was Tk 882 crore in the year, up from Tk 759 crore in 2018.
Total operating income rose to Tk 1,505 crore from Tk 1,326 crore.
"As the leading international trade bank in Bangladesh, with the strength of our network around the globe, we continue investing for the future while fulfilling our clients' needs and helping them find opportunities for growth," de Maricourt added.
But, HSBC Holdings plc's profit-before-tax tumbled by a third to $13.35 billion in 2019, far below the average estimate of $20.03 billion from brokerages compiled by the bank, Reuters reported in February.
That was due to $7.3 billion in write-offs linked to its global banking and markets and commercial banking business units in Europe.
In Bangladesh, the lender's income from investments was up 3.2 per cent to Tk 117.27 crore and commission, exchange and brokerage charge edged up 5.5 per cent to Tk 414 crore.
Deposits, both onshore and offshore, went up 6.69 per cent to Tk 12,852 crore.
The return on equity, a key profitability measure, remained healthy at 12.9 per cent. The bank's loans and advances rose 4.45 per cent Tk 2,329 crore.
It deposited $94 million in direct and indirect taxes to the government exchequer in 2019.
HSBC's long-term credit rating remains at the highest level of 'AAA' for the last twelve years.
The British lender opened its first branch in Bangladesh in 1996. It offers a range of financial services, including commercial banking, consumer banking, global liquidity and cash management, trade services, treasury, and custody and clearing.
Currently, HSBC Bangladesh operates in both the major commercial hubs of Dhaka and Chattogram and has presence in all eight export processing zones.
The picture for the bank in the rest of the world is not that rosy.
HSBC Holdings has said it would shed $100 billion in assets, shrink its investment bank and revamp its US and European businesses in a drastic overhaul that will mean 35,000 job cuts over three years.
The bank, which has struggled to keep pace with leaner and more focused rivals, is seeking to become more competitive as it grapples with slowing growth in its major markets, the coronavirus epidemic, Britain's exit from the EU and lower central bank interest rates.
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