HSBC’s annual results this week showed a large fall in profitability. The cause was centred more on its banking business, while numbers were more positive for activities related to investment funds.
The bank, which owns HSBC Global Asset Management, saw an increase in assets under management of 14% to $506 billion (€467 billion), the company reported.
The amount of net new money to the asset management division over the year was $30 billion. HSBC described this as “strong”. It compared to just $8 billion in 2018.
Meanwhile, in HSBC Securities Services, assets under custody increased 16% to $8.5 trillion, partly driven by client wins.
Assets under administration were $4 trillion – 20% higher than December 31, 2018.
HSBC Holdings on Tuesday reported a 33% fall in profit before tax to $13.3 billion.
Adam Vetttese, an analyst at investment platform eToro, said: “HSBC’s annual results today [18th] were expected to make for uncomfortable reading, but few – if anybody - expected profits to be down more than 30%.
“The bank has taken drastic measures today, including plans to shed £77 billion of assets, 35,000 jobs and slashing the size of its investment bank, as it bids to return to growth.”
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