News Column

HSBC sees profits rise as it benefits from rigorous cost cutting

February 24, 2014

LONDON - HSBC PLC, Europe's biggest bank by market value, saw profits rise for the year as it took advantage of rigorous cutting, but analysts were disappointed because they were hoping for more.

Net profit rose 15 per cent to $16.2 billion from $14.03 billion.

Group chief executive Stuart Gulliver, says the group is now leaner and simpler than in 2011. The bank has cut some 41,000 jobs out of a workforce of 295,000 in the last three years and has dumped 63 non-strategic businesses.

The bank, meanwhile, downplayed volatility in emerging markets. The institution, which has a big presence in Asia, is predicting GDP growth in mainland China of 7.4 per cent this year, together with 2.6 per cent growth in the UK, 2.5 per cent in the U.S. and 1.2 per cent in Western Europe.

(The Associated Press)

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Source: Canadian Press Broadcast Wire (Canada)

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