HSBC Bank Australia suffers earnings fall

John Kavanagh
HSBC Bank Australia contributed US$432 million of pre-tax profit to HSBC plc earnings in 2014. The result was down on the previous year, when the Australian business contributed US$446 million.

In a financial report released overnight, the group reported that Australian retail banking and wealth management was down, while commercial banking was steady. The retail banking and wealth contribution fell from US$100 million in 2013 to US$78 million last year.

Global banking and markets was the best performing division, with a 22.7 per cent increase in pre-tax profit to US$232 million. The division was, according to the report, the lead arranger for the largest mining project financing and the largest transport infrastructure financing in Australia in 2014.

The value of Australian residential mortgages fell from US$9.5 billion in 2013 to US$9.1 billion last year. The value of personal loans also fell, as did the value of "commercial, international trade and other" finance.

Australia remains on of the group's priority growth markets. The local market was one of six locations where HSBC launched campaigns aimed at growing small and medium business loan balances.