HSBC expects to post highest profit since the financial crisis

Nathan Andrada – Fourth Estate Cooperative Contributor

London, England, United Kingdom (4E) – British banking giant HSBC will likely report more than $23bn in pre-tax profits, making it the lender’s best performance since before the financial crisis, as its turnaround plan enters its final year.

The bank is set to announce strong results despite its payment of a $1.9bn settlement with U.S. regulators for its alleged involvement in money laundering for suspected Middle Eastern terrorists and Mexican drug organizations.

HSBC is expected to post the biggest profit by any UK lender since the financial crisis, edging close to the $24bn profit it made in 2007 and the world record for a bank set by Citigroup in 2005 at $24.5bn.

HSBC Chief Executive Stuart Gulliver is also expected to receive a huge bonus. He is reportedly getting a package worth 12.5m pounds, although sources say he will receive just half the amount.

Gulliver has taken major steps to overhaul the bank’s operations since he became CEO in 2011. During the period, the company’s global staff number was trimmed by 10 percent or a headcount of 30,000.

The bank has also sold off several of its international assets like its general insurance businesses in Singapore, Hong Kong, Mexico and Argentina. It has also sold off its Russian banking unit, and most recently its bank based in Panama.

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