It's a long time since a major European bank had to grapple with the problem of surplus capital. But that is the position that HSBC will soon be in.

Despite a $1.9bn fine from the US government for money laundering and a $2.3bn bill to compensate UK customers, the UK-based banking giant was still able to pay $8.3bn in dividends in 2012 and report a sharply improved core Tier 1 capital ratio on a fully loaded Basel III basis of 9%. This is expected to rise to 10.3% in 2013, close to the top of its target.