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Journalism of Courage
The HSBC banking group said Monday its net profit dropped 17 per cent in 2012,when it had to pay a hefty US fine to settle money-laundering claims. But earnings remained robust at 13.5 billion as Asian businesses performed well.
HSBC paid nearly 2 billion last year to settle a money-laundering case brought by US officials that dealt with illicit drug money from Mexico.
It paid another 1.4 billion fine in the UK for improperly selling financial products to customers and also wrote down the value of its own debt by 5.2 billion.
The bank noted that not counting one-time charges,its underlying profit before tax rose 18 per cent to 16.4 billion,as it had to write off fewer bad loans. That suggests it is being hurt less by the economic downturn that has hit its European and US units in recent years.
Chief Executive Stuart Gulliver said the bank has made important progress in focusing on its more profitable businesses and reducing costs. HSBC has cut staff by about 10 per cent.
In terms of the broader strategy that we set out in 2011,weve delivered most of what we promised, he said in a statement.
