HSBC reports ‘record profit’ of $30.3 bn in 2023

HSBC said Wednesday it achieved “record profit” in 2023 as pre-tax profits soared by nearly 80 percent, with the banking giant also announcing further share buybacks.

The Asia-focused lender and its peers have been buoyed by rising interest rates for more than a year, but are bracing for greater economic uncertainties in 2024.

HSBC reported pre-tax profits of $30.3 billion, up from $17.1 billion the year before, in a statement to the Hong Kong stock exchange.

Profit after tax increased by $8.3 billion, to $24.6 billion.

“Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008,” said chief executive Noel Quinn.

The bank on Wednesday said it would initiate a share buyback of up to $2 billion, following the announcement last year of three share buybacks totalling $7 billion.

“This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment,” Quinn added.

HSBC said the profits included a “favourable year-on-year impact” of $2.5 billion due to the sale of its French retail banking operations, as well as a $1.6 billion provisional gain recognised on its acquisition of Silicon Valley Bank UK.

The profits were partly offset by an impairment charge related to the investment of its associate, Bank of Communications.

Revenue rose by 30 percent to $66.1 billion, the bank said, citing “rises in all of our global businesses due to the higher interest rate environment”. (BSS/AFP)