The British bank HSBC reported 9% rise in annual pre-tax profits to 22.6 billion USD in 2013. The results are optimistic, compared to the 20.6 billion USD pre-tax profits in 2012. However, the result did not meet the expectations of analysts, who predicted a positive annual financial pre-tax result of 24.3 billion USD. The revenue of the largest bank in Europe rose nearly 3% to 63.3 billion USD, compared with 61.6 billion USD in 2012. The operating expenses decreased by 4.3 billion USD, while experts expected spending cuts to reach 5 billion USD.
After the bank announced the unsatisfactory markets results on the London Stock Exchange the shares of the company fell by nearly 4%. The units of HSBC in Hong Kong and Asia Pacific contributed to much of the performance. The bank also increased the size of its dividend by 0.45 USD per share to 0.49 USD per share.
In 2013 the creditor increased the bonuses for its employees by 6% to 3.9 billion USD. As according to the official information just for 239 of its employees the bank has paid bonuses of over 1.7 million USD. Last year, the CEO of HSBC Stuart Gulliver has earned 8 million USD in salary and bonuses, while in 2012 he earned 7.5 million USD. The Bank was the first which announced that it will seek the necessary approval of shareholders to raise new threshold for bonuses in the European Union from 100% to 200% of the amount of the Executive Director’s salary.
The HSBC experts expect that this year the market will be volatile because the emerging markets adjust to the changing economic conditions. But in spite of that in generally they appreciate optimistic prospects for the developing countries in the long run.
“Today the group operates more economically and with more ease compared to 2011 and has owns better potential in operations and management”, told Stuart Gulliver in presentation of the financial results of HSBC. “Our strong capital continues to support the progressive dividend policy and consolidate the status of HSBC as one of the best capitalized banks in the world”, finished the CEO.
The presentation of the bank in 2013, is due to the cuts and restructure of the operations of British lender. More than 40 thousand employees were sacked, as HSBC sell or close 60 of its subsidiaries and has cut a number of costs for the three years of Stuart Gulliver management.