HSBC made a profit before tax of $20,966 million, an increase of $2,023 million, or 11 per cent, over 2004. Net interest income of $31,334 million was $235 million, or one per cent, higher than 2004.

Net operating income before loan impairment charges and other credit risk provisions of $57,637 million was $6,284 million, or 12 per cent, higher than 2004.

Operating expenses of $29,514 million rose $3,027 million, or 11 per cent, compared with 2004. On an underlying basis and expressed in terms of constant currency, operating expenses increased by nine per cent.

HSBC’s cost efficiency ratio was 51.2 per cent compared with 51.6 per cent in 2004.

Loan impairment charges and other credit risk provisions were $7,801 million in 2005, $1,610 million higher than 2004.

The tier 1 capital and total capital ratios for the Group remained strong at 9.0 per cent and 12.8 per cent, respectively, at 31 December 2005.

The Group’s total assets at 31 December 2005 were $1,502 billion, an increase of $222 billion, or 17 per cent, since 31 December 2004.