Stock markets on Monday brought good news for Europe’s two biggest banks, HSBC and BNP Paribas, although for many politicians it may be difficult to gulp down the fact that banks like these earn such huge amounts in income.
But politicians also forget the fact that just like any other business, banks also require making profits so as to efficiently run its business of banking.
For the first half of the year, HSBC, on an individual level, pushed out $2.8 billion of dividends, where a major of its proportion headed into pension funds, which had to experience a great jolt pushed by BP’s abrupt ditching of payout.
The banks in the U. K. are being condemned for their criticized bonus arrangements, because of which the businesses are incapable of getting enough lending support from the banks.
Employee compensation and benefits in HSBC jumped up from $9.2 billion in contrast to $2.8 billion dividend.
HSBC Chief Executive, Michael Geogehgan spoke of the importance of dividend income to its investors, which the bank realizes in all terms.
The bank hopes to see an increasing number of investors based in China. In the early parts of this year, Mr. Geoghegan himself relocated to Hong Kong, illustrating the needed move to help the business do well.