HSBC smashed the record for annual profits by a UK bank today when it unveiled a surplus of $20.97 billion (£11.9 billion) for 2005.
The group said the figure was 11% higher than its haul of the previous year after its core businesses in the UK, US and Hong Kong produced 'robust performances'.
But charges for bad loans rose by $1.6 billion during the year against a backdrop of rising personal bankruptcies in the UK, which generates around one-fifth of HSBC's earnings.
Announcing total impairment charges of $7.8 billion across its global operations, HSBC said action taken to tackle bad debts in the UK began to have a positive effect during the final six months of 2005.
Today's results come a week after Royal Bank of Scotland unveiled profits of £8.25 billion before accounting for one-off items.
