HSBC reported pre-tax profits of $21.9bn (£13.8 billion) in 2011, an increase of 15% on a year earlier.
The profits announcement is among the highest-ever by a company in the UK, and is close to its 2007 record of £15.1bn.
HSBC said its UK profits increased 17.2% on a year earlier to £1.5bn.
The company, which is based in London, makes 90% of its money outside Britain.
It said it paid £2.1bn in compensation to employees, including bonuses.
Chief executive Stuart Gulliver is to be awarded a total pay package of up to £6.7 million for 2010 as his £2 million salary and allowances will be boosted by a £2.2 million bonus and other long-term incentives.
The final element will be in shares and cannot be sold until he retires or leaves HSBC.
HSBC's performance was lifted by a 12% rise in revenues in Asia, Latin America and the Middle East and North Africa, which now account for 49% of its revenues, while its commercial banking arm enjoyed record pre-tax profits of 7.9 billion US dollars (£5 billion) up 31% on the previous year.
It comes after state-backed Lloyds and Royal Bank of Scotland reported hefty losses, while Barclays reported a fall in profits.
Gulliver said 2011 was "a year of major progress for HSBC".
He said: "We recorded a strong performance in faster-growing markets and had a record year in commercial banking.
"I am pleased with our progress but there is a lot more to do and we remain focused on delivering our targets."