The bank had been expected to post profits of $23.4bn, as it enters the final year of its turnaround plan.
However, direct-only mortgage lender HSBC lent £16.4bn of new gross mortgage lending in 2012, 24% ahead of 2011 putting it squarely in the market share hunting pack with Barclays and Nationwide.
The 2012 results include a $5.2bn accountancy write-down on its debt. It also paid $1.9bn of fines and penalties as part of the settlement with US authorities and the FSA, and additional provisions of $1.4bn in respect of UK customer redress in 2012.
Underlying revenues for the group were $63.5bn, up 7%. This included global banking and markets at $18.2bn, up 10%; commercial banking $15.9bn, up 8% and retail banking and wealth management $27.7bn, up 6%.
Stuart Gulliver, group chief executive, said: “HSBC made significant progress in 2012. First and foremost, we grew our business. We increased revenues, performed well in most faster-growing markets and enjoyed a record year in Commercial banking.”