HSBC annual pre-tax profits edge up to $18.87 bln

He said 2014 was marked by “seismic shifts in global economic conditions”, notably sharp falls in prices for oil and other commodities, partly stemming from slowing growth in China.

The bank reported profit before tax of $18.87 billion for 2015 against $18.7 billion the year before, below the average analysts’ estimate of $21.8 billion, according to Thomson Reuters data.

HSBC, which just over a week ago decided not to move its headquarters to Hong Kong, proposed to hike its dividend to $0.51 per ordinary share against $0.50 a year earlier.

Against a tough backdrop, the financial performance in 2015 was “broadly satisfactory”, added chairman Douglas Flint.

For the full year, the bank said net profit fell slightly to about $13.5 billion, while revenue dropped to $59.8 billion.

Loan impairment charges jumped to $1.65 billion in the fourth quarter from $1.01 billion a year earlier, led by those in North America, which increased by $365 million.

The British-headquartered multinational banking company reported that it faced a $0.4 billion rise in bank levies that raised the company’s adjusted operating expense, EFE news reported.

HSBC Holdings Plc increased the number of employees paid more than 1 million euros ($1.1 million) by 42 percent to 453, even as Stuart Gulliver took his lowest pay packet since taking over as chief executive officer in 2011. HSBC said it is cooperating with the investigation and said it couldn’t predict the timing or impact on the bank.

HSBC plans to cut risk-weighted assets by about US$290 billion, about a quarter of the bank’s total, while redeploying around US$100 billion to US$150 billion of risk-weighted assets in Asia.

HSBC also said it has chose to retain and restructure its Turkish operations, abandoning its earlier plan to sell the unit.

By region, HSBC is most exposed to North America, which accounted for USD9.0 billion of the overall figure, followed by Asia at USD7.0 billion, Europe at USD6.0 billion, Middle East & North Africa at USD5.0 billion, and Latin America at USD2.0 billion.