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Banking major HSBC, on Tuesday, said its India operations reported a profit before tax of $1.024 billion in fiscal year 2020, which was a 1.8 per cent increase compared to $1.006 billion in the previous fiscal.
India is the third largest contributor to HSBC’s Group profits, with Hong Kong and Mainland China being the top two contributors.
In its investor presentation, HSBC has outlined that along with Greater China and South East Asia, India will be a key driver of its future growth.
The bank plans to grow wealth and international wholesale banking divisions in India.
“The bank seeks to grow its market share in transaction banking, including trade and foreign exchange, driven by digital and new supply chain solutions,” said the investor presentation.
Top bank for NRIs
In wealth, it seeks to expand insurance and asset management and build position as the top foreign bank for Non-Resident Indians and top 10 insurance player.
“For overseas Indian customers, we will grow NRI hubs, enabled by digital and remittance proposition, addressing significant NRI footprint across HSBC,” the presentation said.
However, overall, on a global basis, HSBC reported 30 per cent drop in profit after tax to $6.1 billion in fiscal year 2020 from a year ago. Profit before tax was down 34 per cent to $8.8 billion due to higher expected credit losses and other credit impairment charges (ECL) and lower revenue, partly offset by a fall in operating expenses, it said.
Of the reported profits from India operations, the most significant contribution was from the global banking and markets division, which reported a profit before tax of $593 million in fiscal year 2020 versus $533 million in the previous fiscal 2019.
Commercial banking division reported profit before tax of $187 million in fiscal year 2020, slightly lower than $201 million a year ago.
Profit before tax of wealth and personal banking was also down to $16 million in fiscal 2020, compared to $67 million in fiscal 2019.
As on December 31, 2020, HSBC had a total workforce of 2,26,000 full-time employees. India is main centre of employment with 39,000 employees.
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