HSBC outlined the contribution of structured products sales and structured investment banking solutions to its bottom line for 2004. The results statement said the global bank had increased pre-tax profits by more than a third year on year to a record $19.4bn.
The statement said retail sales of structured products had further boosted income in Hong Kong and Singapore. In Hong Kong, income from sales of unit trusts and structured products grew 43% to US$183 million, reflecting the successful deployment of customer relationship management systems, an increase in the number of HSBC Premier relationship managers, and a rise in stock market activity. New products, including a range of structured treasury products and capital-guaranteed funds were launched to broaden the range of investment options.
As a result of increased market activity, private banking in Hong Kong was also boosted by higher sales of tailored structured products, debt securities and derivatives transactions, translating into a 68% increase in dealing profits.
Dealing income across the Far East region rose by 21% as a result of higher client transaction volumes in structured products, foreign exchange and options sales. The 10% increase in Singapore was driven by sales of tailored structured products, many of which were the result of cross sales to existing HSBC customers.
Fee income in personal financial services in the Far East region was also boosted by the growth in sales of structured products.
In private banking globally, higher client volumes boosted dealing income from foreign exchange, options, and structured products. Revenue from sales of structured products increased by nearly 70% compared with 2003.
