A month after RBS broke the record for single company pre tax profits of £6.2bn, HSBC smashes the record with £7.7bn
Links:
http://news.bbc.co.uk/1/hi/business/3521183.stm
http://news.ft.com/servlet/ContentSe...=1045050946495
Do people think there should be a cap on company profits? That is a lot of money to be making...
"All our beliefs are being challenged now, and rightfully so, they're stupid." - Bill Hicks
<shrugs> Well if people are stupid enough to borrow such vast amounts of money in this country then I guess the banks are within their rights to make money off them. If/When the economy tanks the banks will almost certainly take a pounding by being forced to write off bad debt, so it's swings and roundabouts. I don't believe there is a workable method of capping profits, but I wonder if there is a way of discouraging such massive borrowing....I can't see how continued economic growth driven largely by consumer credit is anything other than a bubble economy, and bubbles, as history has proven time and time again, always burst.
Thank goodness I'm a civil servant, because I honestly think there'll be a crash this decade.
Rich :¬)
No, why should profits be restricted? The whole point of the free market is the drive for profit which increases efficiency by lowering costs. Well done to HSBC!Originally Posted by DaBeeeenster
Definitely with slick on this one.
Why should there be on a cap on profits? The majority of large companies put money back into the community (albeit a very small, minute percentile) but if company profits were capped - money would end up going to the government who would squander it in whatever way they wanted.
The only possible reason for capping profits that I can see are jealousy and a half hearted left wing view.
What does the profit actually mean for customers? im with HSBC, will is see anything changing? or is it just for people in the company?
All the same, that is huge amount of money
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actually how in the name of sweet free market dogma do bank profits equal a more cost effective and effecient economy. Unless im stupid banks don't actually produce anything of real usefulness, they make their money thru the administration of capital eg loaning, stock market investing (gambling). infact an economy top heavy with finance capital is an economy that is remarkably ineffecient and prone to rapid recession.
we have thousands employed in financial services (from bank clerks to call centre staff pimping more credit cards) whilst there is a shortage of nurses and teachers, how effecient it is too have universtiy educated people working in call centres selling debt to people (ive done it myself for HSBC) whilst our social services are understaffed and underfunded.
As for where the profits go well some of it will be used to give shareholders bonuses and the boardroom another couple of yachts. meanwhile the rest is reinvested back into the opening of more call centres, thats if they haven't reloacted to India for lower labour costs.
All i know is that the bank clerks, office cleaners and call centre workers won't be getting any of those profits.
Behold the miracle of the finance capital money from nothing!
"The less you eat, drink and buy books; the less you go to the theatre, the dance hall, the public house; the less you think, love, theorise, sing, paint, fence, etc., the more you save – the greater becomes your treasure which neither moths nor rust will devour – your capital. The less you are, the less you express your own life, the more you have, the greater is your alienated life, the greater is the store of your estranged being." Karl Marx
of yeah and alot of the money will be invested in the weapons industry which is a truly effecient industry, oh wait it makes profits from selling things that kill people and destroy the labour of past generations.
JUSTICE FOR NO ONE!!!! VIVA LA CAPITALISM!!
Last edited by revol68; 01-03-2004 at 05:08 PM.
"The less you eat, drink and buy books; the less you go to the theatre, the dance hall, the public house; the less you think, love, theorise, sing, paint, fence, etc., the more you save – the greater becomes your treasure which neither moths nor rust will devour – your capital. The less you are, the less you express your own life, the more you have, the greater is your alienated life, the greater is the store of your estranged being." Karl Marx
I think they should give everyone who has an account with them £10...
(actually I dont have an account, but its still a cool idea)
Twigman
Well done HSBC.
Why the hell should they give money away just because they're making loads? They've earned that money and I hope the worldwide MD of HSBC is swimming in a gigantic mansion filled with $50 bills
the basis of banking is that they make money because they have got money. Lets take a mortgage for example the reason the banks makes money on a personal mortgage is simply because most people never will have enough to buy a house out right.
well done HSBC, well done indeed!! Most be proud of the money u extract from third world debt, well done too for sacking workers so u could move to places with cheaper labour markets, well done for investing in arms companies.
Its a sick world where people congratulate a bunch of rich parasites who perform no useful work meanwhile teachers, firefighters and civil servants are painted as greedy bastards if they ask for a pay rise.
"The less you eat, drink and buy books; the less you go to the theatre, the dance hall, the public house; the less you think, love, theorise, sing, paint, fence, etc., the more you save – the greater becomes your treasure which neither moths nor rust will devour – your capital. The less you are, the less you express your own life, the more you have, the greater is your alienated life, the greater is the store of your estranged being." Karl Marx
too f*cking true. take my mom for example. she is a teacher in a special needs school. she has a very stressful job with the kids there, is in quite a few dangerous and emotionally disturbing situations, has to do a HELL of a lot of work (about 4hrs a night) outside the school, for which she aint paid. she doesn't get a lot of money at all.
how is it fair then that someone can live a life of luxury, fund and control governments, and generally have a much better quality of life from the interest generated by the money she puts into her account?!?! its blatantly wrong.
HSBC was started with funds from opium anyway. how beautiful. ahem...
if war is the answer, then we are asking the wrong question
2 things i hate the most - xenophobia and the french
"chuffing"
For god sake, take a look at how banks make the money!! Not every bank out there make a living ripping people off!
If you don't believe me, take a look at the annual report (pdf) yourself... HSBC is one of the truly global bank - it has operations in Europe (France and UK, in particular), North America and Asia (notably Hong Kong). In terms of interest income, only two thirds of its net interest income is derived from loans and mortgages, the rest is from debt securities. Other incomes makes up around 40% of its operating income - mostly fees and commission...
More over, I read the accounts over and over again, and I can't find a figure that will give me GBP7.7bn... It's Profit on ordinary activities after tax is US$9.7bn (which is around GBP5.2bn). It's Profit on ordinary activities before tax is US$12.8bn (which is around GBP6.9bn)...
Caution: Cape does not enable user to fly. - Batman costume warning label (Rolfe, John & Troob, Peter, Monkey Business (Swinging Through the Wall Street Jungle), 2000)
i don't agree with capping profits.
but what i don't agree with is when a few banks can monopolise a market and shaft customers out of large sums of money!.
compare the interest rates between the big 4 banks and a few building societies. you will be suprised (oh i bank with, amogst others, nationwide btw)
dgr
Last edited by dgr; 02-03-2004 at 10:49 PM.
dothan 745 @ 2.4ghz | 2gb Corsair XMS (2-3-3-6) | dual raptors (raid0) | ATI 9700pro | CM201 | dual lg 1810
Actually it works out at about £115 per person, the population of this country is roughly 60 million. HSBC are an international bank, I'm more amazed by RBS/Natwest's profit TBH, although I guess they probably have international operations too.
Rich :¬)
how is that relevant for the Hong Kong and Shanghai Banking Corporation, exactly?
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