HSBC said profit before taxes from its Middle East operations increased 25 per cent last year amid steady oil prices, government infrastructure spending and rising real estate prices.
Income before profit from its operations in the region rose to US$1.69 billion from $1.35bn, Europe’s biggest bank said in its annual report yesterday.
The bank’s global banking and market division in the region had the best increase in profit, gaining 50 per cent to $869 million last year.
The bank estimated that economic growth in the region last year reached 4 per cent, led by Saudi Arabia’s expansionary fiscal policy and infrastructure spending. Unrest in Egypt kept economic growth subdued at 2.2 per cent in 2012-2013 fiscal year, while the budget deficit widened to 14 per cent of GDP.
Growth in the Arabian Gulf was also boosted by steady oil prices at about $100 to $110 per barrel last year and an economic turnaround in the UAE led mainly by real estate and services. "Despite strong demand and loose fiscal policy, inflation remained very subdued across the region throughout 2013, apart from UAE real estate," the bank said.
As a whole, HSBC posted full-year profit that fell $2bn short of analyst estimates as a cost-cutting drive missed targets and revenue shrank. Pre-tax profit for the year rose 9 per cent to $22.6bn from $20.7bn in the year-earlier period, the London-based bank said. That was lower than the $24.6bn median estimate of 30 analysts surveyed.
The bank, which gets most of its profit from Asia, is focusing on its most lucrative markets amid increased regulation and compliance costs. While the chief executive, Stuart Gulliver, has closed or sold 63 businesses since 2011, costs are running above his target of about 50 per cent of revenue, while return on equity, a measure of profitability, is still short of his goal.
HSBC will pay a 19 cent dividend for the fourth quarter, bringing the total for the year to 49 cents a share. The shares have lost 5 per cent year to date.
Costs fell to $38.6bn from $42.9bn. Expenses as a proportion of revenue fell to 59.6 per cent from 62.8 per cent. That compares with Mr Gulliver’s “mid-50s” target for 2014 to 2016.
Return on equity climbed to 9.2 per cent from 8.4 per cent in 2012, still short of the company’s goal of 12 to 15 per cent.
Revenue after insurance claims fell to $64.6bn from $68.3bn in the year-earlier period. Loan impairment charges fell to $5.85bn from $8.31bn on lower bad debts in North America and Europe, the bank said.
HSBC said yesterday the rout in emerging markets this year is not a “generalised threat”.
“We remain optimistic about the longer-term prospects for emerging markets,” Mr Gulliver said. “Nevertheless, we anticipate greater volatility in 2014 and choppy markets as adjustments are made to changing economic circumstances and sentiment.”
Mr Gulliver was paid a bonus of £1.8m (Dh11m) for last year, compared with £700,000 for 2012. The bonus pool for the lender’s global banking and markets business rose to $1.33bn from $1.27bn.
mkassem@thenational.ae
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How it works
A $10 hand-powered LED light and battery bank
Device is operated by hand cranking it at any time during the day or night
The charge is stored inside a battery
The ratio is that for every minute you crank, it provides 10 minutes light on the brightest mode
A full hand wound charge is of 16.5minutes
This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode
When more light is needed, it can be recharged by winding again
The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge
No limit on how many times you can charge
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
More on Palestine-Israeli relations
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
