©Reuters
Investing.com — Asia-focused financier HSBC Holdings PLC (HK:) (LON:) suffered weaker-than-expected profit growth in 2023, but benefited largely from rising global interest rates, still posting record pre-tax profits and the bank also increasing its Announced. Towards a $2 billion stock buyback.
HSBC's pre-tax profit for the year ended Dec. 31 rose to $30.3 billion from $17 billion a year earlier, but fell short of Bloomberg's forecast for a profit of $34.12 billion.
The bank's annual revenue rose 30% to $66.1 billion, with net interest income soaring to $35.8 billion from $30.38 billion a year earlier, according to a Hong Kong Stock Exchange release.
The bank announced its fourth interim dividend of 31 cents per share, bringing the total dividend for 2023 to 61 cents per share, almost double the 32 cents per share for 2022.
HSBC also announced a share buyback of up to $2 billion, expected to be completed within the next three months.
The bank appears to be benefiting from rising global interest rates, with its shares up 1% in Hong Kong trading after the results, although exposure to credit slowdowns in Hong Kong and China has limited exposure.
“We have a strong platform for growth with our two home markets and the opportunities that exist across our international wholesale, transaction banking and wealth management businesses. “We are committed to increasing the sustainability of our business and targeting mid-teens returns in 2024,” CEO Noel Quinn said in a statement.
HSBC expects net interest income to be at least $41 billion in 2024 and targets an annual payout ratio of at least 50%.
The bank also plans further cost reductions and said its outlook for loan growth in the first half of 2024 remains “cautious.”
