HSBC made a profit before tax of $22,086 million, an increase of $1,120 million, or
five per cent, over 2005. Net interest income of $34,486 million was $3,152 million, or 10 per cent, higher than 2005.
Net operating income before loan impairment charges and other credit risk provisions of $65,366 million was $7,729 million, or 13 per cent, higher than 2005.
Group chairman Stephen Green said: “It is a testament to HSBC’s strength and diversity that we grew pre-tax profits in 2006 to $22 billion, despite a “major setback” in part of our mortgage business in the United States.
“For the third year running, return on average shareholders’ equity exceeded 15 per cent, revenue growth was in double digits and we maintained an essentially flat cost-efficiency ratio at 51.3 per cent. In 2006, pre-tax profits from Asia, the Middle East, Latin America and other emerging markets approached 50 per cent of the Group’s total.”
Despite the issues in the US mortgage business, which are currently being rectified to avoid any repetition, Group profit attributable to shareholders of the parent company grew by five per cent to $15,789 million. Earnings continued to be well diversified, both geographically and by customer group.
HSBC met their objective of funding organic expansion through productivity improvements. Achieving this in a year of continuing investment in developing distribution platforms and product capabilities was a tribute to the focus placed by HSBC’s 312,000 staff around the world on custo-mer service.
The tier 1 capital and total capital ratios for the Group remained strong, at 9.4 per cent and 13.5 per cent, respectively, at 31 December 2006.
The Group’s total assets at 31 December 2006 were $1,861 billion, an increase of $359 billion, or 24 per cent, since 31 December 2005.
HSBC Malta CEO Shaun Wallis Malta said: “In the context of HSBC’s Group strength, HSBC Malta continues to gain from best practice, product innovation and systems on a worldwide scale. Through such a linkage, HSBC Malta stands to achieve further systems and cost efficiencies.”