The bank increased its bonus pool for staff to $3.9 billion in 2013, up 6 percent from the previous year. It paid 239 members of staff $1.7 million or more.
Chief executive Stuart Gulliver was paid $8 million in salary and bonuses last year, up from $7.5 million in 2012.
The bank also became the first to announce it would seek the necessary shareholder approval to lift the new EU bonus cap from 100 percent of its top executives' salary to 200 percent.
Underlying revenue at HSBC rose to $63.3 billion in 2013, compared with $61.6 billion in 2012, while operating expenses dropped by $4.3 billion last year, below the $5 billion fall expected by analysts. The bank also upped its dividend to $0.49 from $0.45 per share.
As it announced its results, Europe's largest bank warned there could be "choppy markets" this year as emerging markets adjust to changing economic conditions.
"Today the group is leaner and simpler than in 2011 with strong potential for growth," CEO Stuart Gulliver said in a statement.
(Read more: 'Fat finger error' sees HSBC shares spike 10%)
"Our strong capital generation continues to support our progressive dividend policy and reinforces HSBC's status as one of the best capitalized banks in the world," he said.