HSBC set to unveil one of the biggest profit hauls in UK banking history with announcement of £15.6bn profits
Stuart Gulliver is expected to receive a bonus of around £2 million as part of a total pay and benefits package reportedly worth between £6 million and £7 million for 2012
HSBC will unveil one of the biggest profit hauls in the history of UK banking tomorrow - triggering another windfall for its chief executive.
Stuart Gulliver is expected to receive a bonus of around £2 million as part of a total pay and benefits package reportedly worth between £6 million and £7 million for 2012.
The award, which comes despite HSBC's record fine of 1.9 billion US dollars (£1.2 billion) to settle a US investigation into money-laundering, will be announced alongside pre-tax profits of 23.4 billion US dollars (£15.6 billion), according to City forecasts.
That is just shy of the bank's record haul of 24 billion US dollars seen in 2007 and will be the biggest profit by a British bank since before the financial crisis.
The banking group makes an estimated 90% of its money outside Britain and has benefited from its exposure to emerging markets in Asia.
HSBC suffered massive losses at the start of the financial crisis due to its investment in the American sub-prime mortgage lender Household Finance, but since taking over as chief executive in 2011 Mr Gulliver has led an overhaul of the bank's operations.
He has cut about 10% of its headcount and withdrawn from 46 countries, as well as sold off a number of general insurance businesses.
Mr Gulliver's bonus of £2 million, which compares with £2.1 million last year, will be deferred and subject to possible clawback, while he will not be able to cash it in until he retires from or leaves HSBC.
Sky News also reported that HSBC will for the first time publish a single figure for the aggregate pay and benefits packages awarded to Mr Gulliver and his most senior colleagues. It is designed to show compliance with new Government rules on disclosure that will come into force later this year.
Mr Gulliver is entitled to a total package worth £12.5 million, including long-term share awards, but is likely to receive about half that sum.
The US fine will have an impact on the company's overall bonus pool, which is expected to be in the region of £2 billion against the £2.8 billion seen in 2011.
HSBC's record settlement with US regulators in December followed accusations it allowed rogue states and drug cartels to launder billions of pounds through its US arm.
The bank was accused by the US Senate of ignoring warnings and breaching safeguards that should have stopped the laundering of money from Mexico, Iran and Syria. The findings led to the resignation of head of compliance David Bagley.
According to Sky News, it is expected to announce that it will claw back millions of pounds from senior executives deemed to have been culpable in the Mexican situation.
- 1 Windows 10: man updates PC, wakes up to find porn slideshow on repeat
- 2 The 'world's most beautiful vagina' has been debunked by science
- 3 John Green schools morning show hosts after awkward interview with Cara Delevingne
- 4 Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
- 5 Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
John Green schools morning show hosts after awkward interview with Cara Delevingne
Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
'Rowdy' Roddy Piper dies: Wrestling legend dies aged 61, according to reports
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...