Global banking giant HSBC Holdings said its headline 2003 pre-tax profit rose 37%, boosted by a series of major acquisitions around the world but still just short of analysts' expectations of a 40% gain.
HSBC said profits before goodwill and tax were $14.40 billion, up on the $10.5 billion it reported for 2002, on operating income of $41 billion, up 54% on $26.6 billion.
Reported group pre-tax profits, which takes into account certain charges and costs, were up 33% to $12.8 billion from $9.6 billion a year earlier, with total dividends at 60 cents per share, up 13%.
Recent acquisitions Household International and HSBC Mexico accounted for 70% of the increase, contributing $1.8 billion and €441m respectively to earnings, the bank said.
Along with their contribution came a rise in bad and doubtful debts, which at $6.09 billion were up $4.77 billion. HSBC attributed the increased charge to the two acquisitions - Household International with $4.6 billion and HSBC Mexico $110m.
In a statement, group chairman Sir John Bond said 2003 had been a good year but warned that soaring property prices and slow wage growth was a concern.
'The picture is one of improving sentiment and stronger growth prospects in the near term but with the potential risk that structural imbalances might lead to economic weakness or dislocation,' Bond said.
The once core flagship operations in Hong Kong contributed 26% of earnings in 2003, down from 35.3% in 2002 while the North American operations jumped sharply, accounting for 29% after 13%. Europe accounted for 33% of profits, down from 39% in 2002, with the bank's global strategy showing a much more balanced spread around world in keeping with its current development plans.
