Following the announcement of the bank's annual results on Monday, which revealed an underlying pre-tax profit of US$13.3 billion,
the Cayman Islands CEO of HSBC, Gonzalo Jalles, said the results highlight the strength, diversity, and global reach of the group. After another challenging year for the economy and financial sector, the bank said it had delivered a resilient performance for 2009, demonstrating the importance of its diversified business model. The bank said it was ahead of 2008 after excluding last year's goodwill impairment and net underlying revenues were also strong, growing 8% to US$72.4 billion.
“The performance of the Cayman operations also surpassed expectations and we are grateful for the many customers who chose HSBC and took advantage of the products and services being offered,” Jalles said. “I am also very pleased with the performance of the HSBC team over the past year as the results could not have been achieved without their collective efforts.”
He said that, as a result of the performance, HSBC Cayman was well placed to launch Phase 2 of its expansion plans in 2010. ”For this year, we intend to begin offering additional retail products and services that will no doubt continue to provide value to new and existing customers,” he added.
According to Group CEO, Michael Geoghegan, while the bank was not immune to the downturn, the performance demonstrated that HSBC was one of the world’s strongest and most profitable banks. “Our financial strength has allowed us to support our customers through difficult times. The results were ahead of our expectations at the outset of the year, and they underscore HSBC’s strength throughout the most difficult stages of the economic cycle. In particular, our improved underlying performance highlights the strength of our diversified business model,” he added.
The improvements were supported by a stronger result in Global Banking and Markets, which delivered exceptional revenues, stronger Balance Sheet Management performance, and a significant decline in write-downs, the bank said in its release announcing the results.
HSBC also benefited from a substantial fall in loan impairment charges in US consumer finance offset by higher loan impairments elsewhere.
“During 2009 HSBC stuck to its fundamentals and, thanks to this clear focus and our balanced business model, we ended the year as we began: one of the world’s strongest and most profitable independent banks,” Geoghegan said.
The bank also stated that it continued to take steps to enhance its capital strength and liquidity in 2009. The business generated capital all four quarters, and the successful completion of the rights issue in April 2009 also added US$17.8 billion to shareholders’ equity.
Group Chairman Stephen Green said that throughout the crisis, HSBC had remained profitable, financially strong and independently owned by our shareholders. “The successful completion of our rights issue helped to set the tenor for market recovery, and demonstrated the strong confidence which our shareholders have in our future,” he noted.
Regardless of the speed and nature of the recovery, HSBC said it is well positioned as the world’s top banking brand, with strong capital reserves and liquidity, a broad and well-balanced business model and a proven strategy focused on emerging markets.