HSBC, the UK's largest bank, has unveiled a 10 per cent rise in annual pre-tax profits despite huge losses linked to the global credit crisis.
The firm said its annual profits reached $24.2bn (£12.2bn) in the year to December 31, up from $22.08bn in 2006.
Writedowns on investments hit by the crisis in the US sub-prime mortgage market surged to a whopping $17.2bn. This was a year-on-year increase of 63 per cent.
HSBC attributed its increase in profits to strong growth in emerging market regions such as Asia, the Middle East and Latin America.
The company's profits were much better than many analysts had predicted.
HSBC chairman Stephen Green said he was pleased with the results but also warned that the outlook for 2008 was "uncertain".
"2007 was a year when large parts of the international financial system came under extraordinary strain," he said.
"For HSBC to achieve another new high in earnings, despite these conditions and the exceptionally weak performance of our US business, underscores the value of the strategic focus we announced early last year to drive sustainable growth by concentrating on the faster growing markets of the world."
He added: "The outlook for the rest of 2008 is uncertain. The economic slowdown and the credit outlook in the US may well get worse before they get better."
Shares in HSBC were up 1p at 767p in early trading.
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