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HSBC pre-tax profit up 19% in India for FY23, more profitable than China

China's pre-tax profit plummeted 89% Y-o-Y to $371 mn in 2023 from $3.40 bn in 2022 due to losses the bank suffered in its wealth management, personal banking and corporate centre verticals


Photo: Bloomberg

Abhijit Lele Mumbai

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HSBC Group has posted a 19 per cent year on year (Y-o-Y) increase in pre-tax profit from Indian operations to $1.51 billion in the financial year that ended in December 2023 on healthy contributions from commercial banking, global banking, and market verticals. Indian operations posted a profit of $1.27 billion in 2022.

In contrast, China’s pre-tax profit plummeted 89 per cent Y-o-Y to $371 million in 2023 from $3.40 billion in 2022 due to losses the bank suffered in its wealth management, personal banking and corporate centre verticals.

HSBC, in a statement on Wednesday, said it has continued to diversify profit generation geographically across multiple markets.

"The positions that we have as a leading foreign bank in mainland China, India, Singapore, the UAE, Saudi Arabia and Mexico – all of which are also well connected to our international network – mean we are well placed to capture opportunities in these fast-growing economies," it said.

This was again evident as they all reported profits significantly in 2023, with India, and Singapore each contributing over $1 billion in profit for the bank.

According to its annual report, global financial powerhouse HSBC aims to continue growing its wholesale franchise by taking advantage of corporate supply chains in India.

The bank is also tapping into the wealth pools of the Indian diaspora with the launch of onshore Global Private Banking, it said.
HSBC, which has 42,000 employees in India operations, said the South and Southeast Asian economies will carry good economic momentum into 2024.

“India and Vietnam are currently among the fastest growing economies in the world, benefiting from competitive labour costs, supportive policies, and changing supply chains,” it said.

HSBC said that Chinese companies are among those increasingly looking towards these and other markets, as China’s economic transformation towards high-quality growth and domestic consumption continues.

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First Published: Feb 22 2024 | 12:05 AM IST

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