HSBC's record results sees profit rise by a third

The British-based HSBC bank has posted record results for 2003, with profits soaring by a third to almost £7 billion, it has been reported today.

HSBC made a profit on ordinary activities before tax of £6.88 billion in 2003, an increase of £1.7 billion, compared with 2002. Of this increase, over 70% arose from two recent major acquisitions – Household and HSBC Mexico.

Net interest income of £13.7 billion in 2003 was £5.42 billion, or 66%, higher than 2002. Excluding the two acquisitions, and in terms of constant currency, net interest income was "marginally higher".

Operating expenses (excluding goodwill amortisation) rose £3.28 billion, or 41%, and the charge for bad and doubtful debts was £3.26 billion in 2003 – £2.55 billion higher than in 2002 – which "was essentially all attributable to acquisitions", the group said.

The chairman, Sir John Bond, said that 2003 had been "a good year for HSBC".

He added: "Our record results show the diversity of our business against a backdrop of improvement in most of the world’s major economies. They reflect the trust which more than 110 million customers we serve around the world place in us for their various financial needs. Our performance also benefited from a strong contribution from recent acquisitions, an expanded geographical reach and our continuing investment in new products and services, in systems, and in our people. The dedication and talents of my colleagues throughout HSBC are amongst our greatest strengths."

Last year saw the final stage of the group's five-year 'Managing for Value' strategic plan.

(gmcg)