February 27, 2012- Europe’s biggest bank, HSBC Holdings announced it was on track to meet its goal of profitability for 2013. It recently posted an increase of 27% in annual profit for 2011. Net income was $16.8 million in 2011, an increase from the $13.2 billion from the previous year. The results met analyst’s estimations for last year. The bank said it expects to reach its goals for profit in 2013.
Stuart Gulliver, the bank’s Chief Executive Officer, said it was eliminating 30,000 jobs. He also announced the bank would pull out of markets that have been less profitable to help save the bank $3.5 billion by the beginning of 2013. A competitor, Barclays, Plc., said it may not reach its 13% profitability it targeted by 2013.
For 2011, return on equity increased to 11% from 9.5% the previous year. One analyst in London said the bank still has issues with is cost control. Stating that they were higher than what was expected.
Share prices dropped about 1% in early trading on Monday. Prior to the announcement today, its stock had dropped 19% in the last year. The bank’s CEO said it has saved over $900 million in cost cutting measures. The lender receives most of its profit in Asia and announced asset sales of $4.89 billion since last May.