HSBC is found in choppy waters globally. But its Bangladesh procedure is cruising
HSBC Bangladesh's income soared 16 % last time on the trunk of higher interest money although its mother or father company's takings tumbled.
"This is another time of progress and an excellent accomplishment for HSBC Bangladesh," Francois de Maricourt, chief executive officer of HSBC Bangladesh, told The Daily Star.
The local functions of the London-based Asia-focused international bank's profit-after-tax stood at Tk 491 crore, up from Tk 445 crore a year earlier, it said in a statement.
"Our local outcomes reflect profits up 16 %, twice the country's GDP progress. This is another testament of the effort and dedication of our team and we wish to thank our buyers and stakeholders for whom we exist."
Net interest income rose 19.2 % year-on-year to Tk 972.96 crore.
Profit-before-tax was Tk 882 crore found in the entire year, up from Tk 759 crore in 2018.
Total operating income rose to Tk 1,505 crore from Tk 1,326 crore.
"As being the leading international trade lender found in Bangladesh, with the strength of our network around the world, we continue trading for the future while fulfilling our clientele' needs and supporting them find prospects for expansion," de Maricourt added.
But, HSBC Holdings plc's profit-before-tax tumbled simply by a third to $13.35 billion in 2019, far below the average estimate of $20.03 billion from brokerages compiled by the lender, Reuters reported in February.
That was due to $7.3 billion in write-offs associated with its global banking and market segments and commercial banking business units in Europe.
In Bangladesh, the lender's income from investments was up 3.2 % to Tk 117.27 crore and commission, exchange and brokerage fee edged up 5.5 % to Tk 414 crore.
Deposits, both onshore and offshore, went up 6.69 % to Tk 12,852 crore.
The return on equity, a key profitability measure, remained healthy at 12.9 per cent. The bank's loans and advances rose 4.45 per cent Tk 2,329 crore.
It deposited $94 million found in direct and indirect taxes to the federal government exchequer in 2019.
HSBC's long-term credit history remains at the best level of 'AAA' going back twelve years.
The British lender opened its first branch in Bangladesh in 1996. It provides a variety of financial products and services, including commercial banking, client banking, global liquidity and cash management, trade services, treasury, and custody and clearing.
Presently, HSBC Bangladesh operates in both major commercial hubs of Dhaka and Chattogram and features presence in every eight export processing zones.
The picture for the lender in the rest of the world is not that rosy.
HSBC Holdings has said it could shed $100 billion in assets, shrink its expenditure lender and revamp its US and European businesses in a drastic overhaul that may mean 35,000 task cuts over three years.
The bank, which includes struggled to keep pace with leaner and more focused rivals, is seeking to become more competitive since it grapples with slowing growth in its important market segments, the coronavirus epidemic, Britain's exit from the EU and lower central bank interest levels.
