HSBC posted annual profits up 33 per cent today to match market expectations.
Pre-tax profit jumped to $12.816 billion from $9.65 billion a year earlier, the world's second-biggest bank by market value said.
HSBC's $14.8 billion acquisition of Household in 2003, its largest ever, and its expansion in Mexico accounted for 70 per cent of the profit jump.
HSBC shares were down 0.63 per cent at 869 pence in early trade. The stock has gained 8 per cent in the past six months and is the fourth-best performer of the 11 listed banks on the London Stock Exchange.
Provisions for bad debts rose to $6.093 billion from $1.321 billion a year earlier, largely in line with expectations, with almost all the rise due to Household.
HSBC is almost the last of the British commercial banks to report results for 2003. Lenders' profits have been buoyed by consumer borrowing and corporate bond activity amid low interest rates.
HSBC's profit figure is the largest reported by a British bank, topping the £6.16 billion sterling ($11.5 billion) announced two weeks ago by Royal Bank of Scotland.
The bank recommended an interim dividend of 60 cent a share, an increase of 13 per cent.