Asia growth sees HSBC profits jump to $17.2bn

The huge jump, however, should be seen in the context of 2016 being a year that saw the bank incur a string of one-off costs, and the profit registered last year is still lower than the $18.9 billion reported in 2015.

“A large increase in reported profit before tax reflected both a healthy business and the non-recurrence of significant items from 2016,” said group chairman Mark Tucker.

HSBC it was also benefiting from its reorientation to Asia in recent years, with wealth management, commercial and retail banking becoming key drivers of growth.

The lender, which has its regional headquarters in Hong Kong, has also beefed up its presence in China’s heavily populated Pearl River Delta area, lending to firms in the real estate and infrastructure sectors, and increasing its staffing.

Across 2017, the bank said its pre-tax profits from Asia rose by 89.3 per cent from a year earlier to $15.3 billion - the bulk of its global profits for the year.

That compares with a loss of $1.9 billion recorded in Europe.

Total revenues for the year rose 7 per cent to $51.4 billion, up from $48 billion the year before.

HSBC, Europe’s largest bank, has been focusing on a drive to streamline its business and slash costs and revenues were boosted by Asia driving growth.

That has been spearheaded by chief executive Stuart Gulliver, who on Wednesday will hand over the reins to John Flint after seven years at the helm.

Mr Flint, HSBC’s former head of retail banking and wealth management, has indicated that he plans to speed up the pace of change at the firm.