Personal Financial Services’ profit before tax dropped 38% from 2006 to $5.9 billion. Gains in Asia and Latin America rose 48% and 12% respectively help par the division’s exposure to the U.S.

As a result, profits before tax, excluding the U.S. consumer finance rose 18%.

In 2007, HSBC re-launched HSBC Premier, with new products that included worldwide customer recognition, a single emergency help line, a unified view of all accounts, and a single worldwide Premier brand.

A net 340,000 new Premier were added of which more than 50% were new to the bank, for a total of over 2.1 million. The bank plans to increase the Premier customer base to six million over the next four years.

In addition, new card businesses in Vietnam and Pakistan in 2007, while efforts were put to nurture growth in India and the United Arab Emirates. About 26% of the over 120 million cards in force are now in developing markets.

In the U.S. deposits in 2007 topped $11.5 billion with 620,000 customers, and Asian deposits increased to $1.2 billion with more than 240,000 customers in Taiwan and South Korea. HSBC Direct launched in Canada in June 2007.

Global Banking and Markets

Pre-tax profits rose 5% to $6.1 billion led by strong revenue growth in equities, foreign exchange, securities services, payments and cash management, and asset management.

Write-downs on asset-backed securities and credit trading positions, leveraged and acquisition financing positions, and monoline credit exposures increased to $2.1 billion.

Asia-Pacific and the Middle East contributed over half of Global Banking and Markets’ 2007 pre-tax profits. There were significant gains in advisory revenues in Europe.

During the year, HSBC advised Borse Dubai on its acquisition of OMX of Sweden and related share exchange agreement with Nasdaq and was also the lead arranger of $9.2 billion of facilities for Saudi Basic Industries’ acquisition of GE Plastics.

Private Banking

In Private Banking profit before tax increased 24% over 2006 to $1.5 billion driven by Asia and Switzerland. The bank generated $36 billion in net new client assets.

Client assets grew 26% year-on-year to $421 billion. In the Global Wealth business client assets also spiked 38% to $79 billion.

Growth in emerging markets

During 2007, risk-weighted assets from a year ago rose 42% compared 16% for the group.

Profit before tax in China edged up to a record $1 billion for the year, adding to $7 billion from Hong Kong. Hang Seng Bank has agreed to acquire 20% of Yantai City Commercial Bank in the fast growing Bohai region of China.

HSBC also acquired a 51% stake of Korea Exchange Bank for $6.5 billion. The deal is however subject to regulatory approvals.

In Taiwan, the bank purchased Chailease Credit Services and agreed to acquire the assets, liabilities and operations of The Chinese Bank thereby extending the network to 8 which will extend our network by 39 branches and bring us many new customers.

In Vietnam interest in Techcombank was increased to 15%, while a 10% stake was acquired in insurance company Bao Viet.