- Wuhu scraps week-old housing policy
- Nation on the path to efficient use of energy
- 'It's time for revamp of financial system'
- China investment set to increase
- Freezing weather heats up demand for down products
- Direct purchase plans help farmers grow bigger profits
- Crops in cyberspace
- Spring finally blossoms in Shanghai
- US short-sellers muddy the waters
- Survey: Fewer women in executive posts
|Email | Print | Share||Text Size|
HSBC Holdings Plc sees an even brighter year in China, adding that a hard-landing scenario was erased by the strong bottoming-out of the economy late last year.
"Our outlook (for China) in 2013 is bright," said Chief Executive Stuart Gulliver in a conference call on Monday after the bank reported a 6 percent year-on-year drop in group pretax earnings to $20.6 billion.
"Our core business will continue to benefit from the recovering economic growth" in the Chinese mainland and its positive impact on other faster-growing regions, he said.
Gulliver forecast 8.6 percent economic growth in China in 2013, compared with 1 percent growth in developed economies. The Chinese economy grew 7.8 percent in 2012.
The Asia Pacific region, excluding Hong Kong, contributed 50.6 percent of HSBC's total profit in 2012, up from 34.2 percent in 2011.
The increased profit generated in Asia was offset by a $3.4 billion loss in Europe, especially in the United Kingdom. The bank declined to provide detailed figures for China, but said that growth was strong.
The bank's profit in 2012 was hurt by legal problems in the United States and in the UK, where the bank has set aside a total provision of more than $5 billion to cover regulatory fines over allegations that it helped Mexican and Colombian drug cartels launder money, and of irregularities in the sale of interest rate swaps to small businesses.