London: Facing a worldwide probe for alleged lapses at its Swiss unit, HSBC said its revenue and profits rose in India last year even as it reported a 17 per cent fall in global profits for 2014. HSBC said its India revenue rose by 10 per cent to USD 1.83 billion, while profit was up 7 per cent to USD 700 million in 2014. The bank said the economic recovery in India remained constrained last year, although a new government with a strong mandate boosted market sentiments.
Announcing its full-year results, the bank also said that its operations are exposed to various "geopolitical risks" which increased during 2014 and included high tensions over the line of control between India and Pakistan. "In Asia, there was no easing in the maritime sovereignty disputes involving mainland China and its neighbours, while tensions remain high over the line of control between India and Pakistan, raising concerns over a possible wider conflict between the two nuclear-armed neighbours," it said.
Talking further about India, the bank said "a new government with a strong mandate for reform boosted market sentiment regarding the long-term prospects for the country's economy."However, the recovery remained constrained in 2014 with many infrastructure projects delayed pending government clearance. The steep decline in international commodity prices during the second half of the year helped push down goods price inflation and reduce the current account deficit.
"Following an interest rate rise early in 2014, the central bank kept monetary policy stable throughout the year," it added. With a 32,000-strong workforce, India is one of the major markets for HSBC within Asia. The bank said it continued to grow its balance sheet in India in commercial banking, particularly by helping UK corporations to invest in India.
In global banking and markets segment also, HSBC was adviser on two of the largest M&A transactions in the country in 2014, and in Wealth Management it launched Managed Solutions, a multi-asset fund series. The bank's overall profit after tax, across global operations, fell by 17 per cent to USD 18.68 billion, while revenue rose marginally to USD 62 billion on growth in commercial banking business in the UK and Hong Kong.
HSBC CEO Stuart Gulliver, who saw his pay package decline to 7.6 million British pounds in 2014 from 8.03 million British pounds in the previous year, said it was "a challenging year" with disappointing profits.
