HSBC reports 24 per cent drop in annual profit for 2009
HSBC reports 24 per cent drop in 2009 profits while chief executive announces £4 million in bonuses will go to charity
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By Darren Estwick. |  |
Monday, 01, Mar 2010 09:41
By Sarah Garrod.
Europe's largest bank HSBC has confirmed profits were down 24 per cent in 2009, while its chief executive confirmed he would give up £4 million in bonuses to charity.
The bank announced that pre-tax profit for last year was down to £4.7 billion, but that underlying profits rose by 56 per cent to £8.8 billion.
Chief executive of HSBC Michael Geoghegan said he intended to hand over £4 million in bonuses to charities, amid public concern about the payouts received by bank bosses following the global financial crisis.
Mr Geoghegan said today: "Further to the considerable speculation on my own circumstances, I have reluctantly decided to make a short statement for the record so we can focus on today's real business, the reporting of HSBC's annual results.
"Like many people in business generally and within HSBC specifically, my wife and I have anonymously supported educational charities and projects in a number of different countries over the last three decades."
He added that "provided stock is released" some £4 million would be given to charities including causes in the UK and Hong Kong.
"It is uncomfortable for my wife and I to make public things that we have endeavoured to keep very private and I hope you will understand and respect that I will not be commenting further on this matter. I will now return to focusing 100 per cent on running HSBC in the interest of our customers, our people and our shareholders," he added.
HSBC told shareholders today there were "huge challenges" ahead and said in the UK it had made available £15 billion of new mortgage lending.
Stephen Green, group chairman, said following the release of the results today: "In a number of important respects, 2009 was a year of transition. It began with further turbulence in global financial markets but, during the year, the markets pulled back from uncertainty and progressively stabilised as a consequence of the continued, extraordinary and timely actions by governments and central banks.
"There are also important lessons to learn as we seek to reform the financial system. Few of these lessons are quick or simple, but the need for urgent change is clearer than ever."
At 09:30 GMT HSBC Holdings was down 3.32 per cent on Britain's leading share index, the FTSE 100, leading the market fallers.