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February 22, 2022updated 23 Feb 2022 4:11am

HSBC wealth and personal banking arm reports surge in 2021 profit

HSBC’s Wealth and Personal Banking arm has recorded an adjusted pre-tax profit of $7bn for the full year ended 31 December 2021, a 71% jump compared with $4.1bn in the previous year.

The division’s revenues dropped to $22.1bn from $22.5bn over the period.

Spending was in check, with operating expenses decreasing to $15.3bn from $15.4bn.

Net new invested assets in this unit increased from $53bn in 2020 to $64bn last year, with Asia contributing $36bn.

As a result, Wealth and Personal Banking wealth balances grew 5% to $1.67trn.

Wealth and Personal Banking wealth revenue in Asia, including wealth, insurance, private banking, and asset management, rose 10% to $5.8bn.

However, the bank has warned of a weaker wealth performance in Asia in Q1 2022.

The Global Banking and Markets unit generated nearly $15bn in revenues in 2021, benefitting from growth in Equities, Capital Markets and Advisory and Securities Services.

At a group level, HSBC’s pre-tax profit more than doubled from $8.6bn to $18.9bn.

The spike was driven by a net release of $900m set aside for the pandemic as opposed to $8.8bn in loan loss provisions booked in 2020.

Besides, the bank announced a $1bn share repurchase programme, which builds on its $2bn buyback.

HSBC group CEO Group Noel Quinn commented: “We made good progress against our strategy in 2021, which contributed to a strong financial performance that was supported by the global economic recovery. All of our regions were profitable and we saw growth in the fourth quarter of 2021 in many of our business lines.

“We have good momentum coming into 2022 and are confident that we can continue to execute against our strategy. We also remain cognisant of the potential impact that further Covid-19-related uncertainty and continued inflation might have on us and our clients.”

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