HSBC bank profits double to £11.8billion as chief executive is handed £5.2million bonus

HSBC has reported its profits more than doubled in 2010 to £11.8 billion, with every region in the black for the first time since 2006.

The banking giant's result marks a sharp rise on the £4.4 billion posted in 2009 as it continues to benefit from lower bad debt losses.

But HSBC's new chairman Douglas Flint said the group would 'not forget' the financial crisis and support from governments around the world, adding the group entered 2011 'with humility'.

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Heads you win: HSBC's new chief executive Stuart Gulliver (left) was awarded a £5.2 million bonus for 2010 while the bank's former boss Michael Geoghegan picked up a £3.8 million bonus for the year

HSBC revealed that new chief executive Stuart Gulliver - formerly head of the investment bank - was awarded a £5.2 million bonus for 2010, taking his total package for the year to £6.2 million.

The bank's former boss Michael Geoghegan - who stepped down as chief executive on December 31 - picked up a £3.8 million bonus and a total package of £5.8 million for the year.

He will continue to work for the group until he retires on March 31, and will be paid more than £1.4 million in pay and pension this year.

Mr Geoghegan is also entitled to £200,000 for three months' consultancy work after he retires, although he will donate this to charity.

The group confirmed Mr Gulliver will take his 2010 annual bonus in deferred shares.

HSBC said Mr Gulliver's bonus reflects 'strong achievements' in his former role, despite seeing a slight drop in profits in his division.

Result: HSBC's profits more than doubled in 2010 to £11.8 billion with every region in the black for the first time since 2006

The group revealed the bonus details for its key staff, with 186 UK employees receiving a combined £107 million for 2010.

Salaries for the 186 employees, which include senior management and those in important roles as defined by the City regulator, was £34 million last year.

The bank said the compensation ratio of its investment Global Banking and Markets (GBM) banking division - given as a percentage of revenues - remained unchanged at 23% for last year despite lower profits.

Its GBM arm saw profits drop to £5.9 million from £6.5 million in 2009.

However, the group said the compensation ratio for the entire group eased back to 36% in 2010 from 46.5% in 2009.

On corporation tax, which has been in the public eye after Barclays revealed recently it paid just £113 million in 2009, HSBC said it paid £463 million last year.

The group said this was 27% of the taxable profits in the UK, although a far smaller share of the £4.3 billion overall UK profit reported for 2010.

HSBC's shares dropped 4% as the bank's 2010 profits came in below market expectations.

On an underlying basis, HSBC said profits rose 36% to £11.4 billion.