HSBC India’s pre-tax profit up 11% in 2024, BFSI News, ET BFSI
Hongkong and Shanghai Banking Corp (HSBC), Europe’s largest lender by property, reported an 11% improve in pre-tax revenue at its Indian operations final calendar yr at $1.68 billion, reflecting progress at each its wholesale and retail banking divisions.
The 160-year-old world financial institution, which not too long ago acquired central financial institution approval to increase its geographic attain in India past the customary metropolitan bailiwicks, stated it’s properly positioned to benefit from each private banking and corporate banking opportunities regionally.
India was the fourth largest revenue contributor exterior its residence marketplace for the UK-based financial institution in 2024, behind its Asian base Hong Kong ($11.88 billion), Canada ($4.72 billion) and mainland China ($3.22 billion).
To make sure, China’s revenue additionally included a share of income from its affiliate, Financial institution of Communications. It additionally included one-off good points from the sale of its enterprise in that nation. Revenue from the UK operations was at $6.79 billion.
Revenue earlier than tax from India was led by a 13% progress in its world banking and markets division, which is the financial institution’s most important enterprise centre and providers giant firms and contains treasury operations, to $875 million from $774 million a yr in the past. Revenue earlier than tax from the financial institution’s wealth and private banking division rose 74% to $96 million from $56 million a yr in the past, which CEO Hitendra Dave stated is a results of the give attention to rich residents and non-resident Indians.
Wealth Impact
“That is our technique not solely in India but additionally globally and issues are falling in place superbly for us as wealth will increase within the nation,” Dave stated.
The business banking division, which serves small and medium enterprises (SMEs) additionally reported a 13% improve in revenue earlier than tax to $448 million from $398 million a yr in the past. The financial institution stated it goals to proceed rising its wholesale franchise in India by profiting from company provide chains.
Dave stated the financial institution’s presence in transaction banking, international alternate providers, capital markets and a robust stability sheet places it in an excellent place to serve company purchasers.
