The head of global banking titan HSBC pledged to donate his bonus to charity on Monday amid an outcry over bankers' pay in Britain, as the Asia-focused group announced rising annual net profits.

HSBC, which received no state bailouts unlike other rival banks, said its chief executive Michael Geoghegan would donate up to four million pounds to charity over the next three years.

The move comes after top executives at other British lenders -- Barclays, Royal Bank of Scotland and Lloyds Banking Group -- all recently declared that they would waive their 2009 bonuses.

Geoghegan, who relocated from HSBC's London headquarters to Hong Kong earlier this year, said he would defer his 2009 bonus over the next three years and would give his bonus to various charities.

HSBC also announced on Monday that net earnings rose nearly two percent to 5.834 billion dollars (4.281 billion euros) last year, despite rising bad debts, buoyed by its investment banking division.

"This year the performance of HSBC is significantly stronger and shareholders have seen rises in the equity value of their stock as well as continuing to receive quarterly dividends," Geoghegan said in a statement.

"I have therefore accepted an award of deferred stock, releasable over the next three years and subject to certain conditions.

"Provided that the stock is released I can confirm that between now and 2013 I will give up to four million pounds to charities around the world, including important causes in Hong Kong and in the UK, where I was a resident for six years until January this year."

The sector is wrestling with the dilemma of rewarding top executives amid deep public resentment over lavish pay and excessive risk-taking in the industry, seen as a major cause of the global financial crisis and subsequent worldwide recession.

HSBC added on Monday that loan impairments and other credit provisions jumped 6.2 percent to 26.5 billion dollars last year, while revenue fell 11.2 percent to 78.6 billion dollars.

And the banking titan said it was "well positioned" for economic recovery and expected emerging markets to out-perform those of the developed world and grow three times faster this year.

"Throughout the crisis, HSBC has remained profitable, financially strong and independently owned by our shareholders," said HSBC chairman Stephen Green in the earnings release.

"While emerging markets are leading global recovery and seem certain to drive the majority of the world's growth in the generation ahead, recovery in developed markets has been slow to start."

The group's performance meanwhile undershot market expectations for net profit of about 6.4 billion dollars.

And pre-tax earnings tumbled 24 percent to 7.08 billion dollars. That included a 6.25-billion-dollar accounting charge from the rising value of its own debt.

In late afternoon trade, HSBC shares sank 5.66 percent to 679 pence on the London stock market.

However, the group argued that it had remained in strong financial shape throughout the global financial crisis.

"That HSBC has reported a pre-tax profit in all three years since the onset of the crisis should be a source of great confidence to our shareholders, our depositors and all of our customers," added Green.

"Our track record of delivering results through adversity, and at all stages of the economic cycle, remains intact."

Geoghegan and other British-based executive directors at HSBC, the biggest bank in Europe, took no bonuses for 2008 following dismal results due to losses racked up at its subprime lending business in the United States.

Green, speaking at a Hong Kong press conference on Monday, said however that the bank would increase the remuneration of Geoghegan in the coming year.

"I should make it absolutely clear that HSBC's non-executive directors have unanimously agreed that Mike's remuneration, including salary will be (brought) up to international competitive levels within the next 12 months," Green said.

Geoghegan's annual salary for 2010 is 13.5 million Hong Kong dollars (1.73 million US), according to the bank's annual report.