HSBC profit dips to $20.6bn

 
City A.M. Reporter

Full-year profit for banking giant HSBC fell short of expectations this morning, as it posted a six per cent drop in pre-tax profit.

Europe’s biggest bank said it made a 2012 pre-tax profit of $20.6bn (£13.7bn), down six per cent and below forecasts.

Profits were hurt by a $5.2bn loss on the value of its own debt, and a settlement of $1.9bn to settle US claims of money laundering.

HSBC’s commercial banking division enjoyed a record year, with reported pre-tax profit up seven per cent to $8.5bn over the year.

Despite the fall in profit, HSBC pledged an 11 per cent rise in its first three interim dividends next year, to 10 cents a share.

HSBC chief executive Stuart Gulliver said that the bank had made “significant progress” in 2012.