The net income of Britain's biggest bank - HSBC Holdings was hurt by writedowns on bad loans and a below par performance for its Europe, the Middle East and Asia businesses. Earnings increased moderately to $5.83 billion for 2009 from $5.73 billion a year earlier, the London-based lender said.

Writedowns and other provisions increased to $26.5 billion for 2009, as against $24.9 billion, a year ago. Such impairment charges should decline in 2010, said the bank.

Full-year pretax profit for the European unit fell by 63 per cent to $4 billion, to $10.2 billion for the Asian unit, a decline of 9.4 per cent and by 74 per cent to $455 million in the Middle East, when compared to 2008.

Pretax profit at the investment banking unit more than tripled to $10.5 billion, reflecting the rebound in stock markets, world over. The bank has decided to pay a fourth quarter dividend of 10 cents a share.

CEO, Michael Geoghegan said he had decided to accept a bonus this year; however, he expressed his desire to donate up to $6 million, to charities in Britain, Hong Kong and elsewhere.