HSBC profits drop

22 February 2016

HSBC HSBC, now keeping their HQ in London, maybe moving jobs to France, and killing the password, have cut bonuses to staff, after they reporting a fall in annual profit. The bank warn of a "bumpier" global financial outlook, which is down to the slowing economy in China.

The bank said that adjusted pre-tax profit dropped 7% to $20.4bn (£14.4bn) in the year to the end of December. Now, that's still a remarkable amount of money, so don't start sending them food parcels or anything. They say these drops where the result of losses on loans and rising wage costs.

Of course, HSBC announced a $1.3bn loss for the final quarter of 2015, which surprised many as the previous year, they made a $511m profit.

One of the things that will be happening as a result of this, is that chief executive Stuart Gulliver is going to take a pay cut, "reflecting the weaker financial performance of the group and the progress towards implementation of global standards during the year".

So he'll be slightly less rich than he thought he was going to be. His bonus went from £1.3m in 2014 to £1.1m for 2015. His pay packet for 2015 was £7.3m in total, which is down from the £7.6m he took home in 2014. The poor lamb. He's going to be on the 9p noodles for his tea, if things don't turn around, eh?

There's more bother - there's an investigation by the US Securities and Exchange Commission (SEC) which relates to hiring candidates with ties to government officials in Asia (who are known as "princelings"). The bank said: "HSBC has received various requests for information and is cooperating with the SEC's investigation."

"Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of this matter, including the timing or any possible impact on HSBC, which could be significant."

TOPICS:   Banking

1 comment

  • Captain W.
    Oh bless.

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