HSBC posts USD 22 bln pre-tax profits due to emerging markets

British based global banking finance group HSBC reported pre-tax profits of nearly USD 22 billion for 2011. This represented a 15 percent increase on 2010 and follows the announcement of multi-billion dollar losses by other British banking groups, Royal Bank of Scotland group and Lloyds TSB.

Emerging markets in Asia and Latin America drove profits in 2011, according to the HSBC's financial report. “We recorded a strong performance in faster-growing markets and had a record year in commercial banking. I am pleased with our progress but there is a lot more to do and we remain focused on delivering our targets," said CEO Stuart Gulliver. The results show “sluggish” growth in Europe, the US and other developed markets, with the group exiting US holdings in 2011, against healthy growth in emerging markets. However, HSBC's Brazil – China profits were the star of the show. Brazil generated “pre-tax profits of USD 1.2 billion in 2011, an increase of 19 percent over the prior year. We estimate that we finance over 6 percent of Brazil's total trade and some 9 percent of its trade with China,” said group chairman Douglas Flint. Trade between Brazil and China has increased at breakneck speed in recent years and HSBC appears to be extremely well positioned to push development of trade between the two nations further. HSBC started life in 1865 as the Hong Kong and Shanghai Banking Corporation, before British colony Hong Kong was handed back to China in 1997, HSBC holdings was set up and took over the Midland Bank, Britain. It is currently rated as the world's second largest banking and financial services institution. Liam Lever, liam@romania-insider.com