HSBC’s investment bank swells thanks to Basel

By Owen Sanderson
04 Aug 2014

HSBC reported a year on year surge in its investment bank balance sheet this week, with loans and advances growing 20% to $303bn and risk weighted assets swelling 25% to $537bn. At group level, lending grew 12% to $1.047tr and risk weighted assets grew 13% to $1.248tr — increases entirely accounted for by the investment bank's growth, offset by balance sheet shrinkage in other areas, notably retail banking and wealth management.

Europe and Asia accounted for most of the surge, with Europe up 29% at $393.6bn of RWAs and Asia up 16% to $481.1bn. A big part of the change came from reporting full CRD IV numbers, which HSBC has done since the first quarter of this year. Last ...

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