HSBC India pre-tax profit jumps 15% to USD 1.277 billion

Foreign lender HSBC on Tuesday reported a 15.04 per cent jump in its pre-tax profit from operations in India at USD 1.277 billion for 2022.

The bank had reported a pre-tax profit of USD 1.11 billion from its operations in India, which continues to be fourth largest contributor for group profits, in 2021.

It has added 1,000 people to its India headcount in 2022, to take the total employee strength to 39,000, its biggest in any market. The bank, like many peers in the foreign lenders space, has huge back office operations in India. In a statement, the bank said it has become the largest foreign lender in the country by both advances and deposits as of March 2022.

It also handles 9 per cent of traded forex and 15 per cent of foreign investor custody assets. Among its business lines, the largest segment of global banking and markets saw an uptick in profit before tax at USD 622 million in 2022 up from USD 593 million, while the commercial banking segment delivered profit before tax of USD 304 million as against USD 265 million.

Profits from the wealth and personal banking vertical more than doubled USD 45 million in 2022 from USD 20 million, while the ’corporate centre’ function saw an increase in the overall profit contribution to USD 306 million as against USD 232 million, according to the statement.

It is looking to re-launch the high net individuals-focused private banking business in 2023, after exiting the business in 2015. The bank said its GIFT City International branch has a balance sheet of USD 3.5 billion, making it among top three foreign lenders to operate from India’s international financial service centre.

Nearly half of the top 100 unicorns, or companies valued at over USD 1 billion, bank with it, the statement said, adding that it counts 1,200 new age economy startups as clients.