Customers use an automated teller machine (ATM) at a bank branch of HSBC Holdings PLC in Hong Kong on the evening of Saturday, February 16, 2019.
Kevin Kwan | Bloomberg | Getty Images
HSBCFull year 2023 before tax profit The London-based lender missed analysts’ forecasts, sending its shares down as much as 3% due to impairment costs related to its stake in a Chinese bank.
According to data, the pre-tax profit of Europe’s largest bank by assets increased by about 78% in 2023 from the previous year, reaching US$30.3 billion. its statement It was released on Wednesday during Hong Kong’s midday break. That was below the $34.06 billion median forecast among analysts tracked by London Stock Exchange Group (LSEG).
Chief Executive Noel Quinn also announced up to $2 billion in additional stock buybacks and the highest full-year dividend per share since 2008. Quinn said the bank returned $19 billion to shareholders last year and conducted three share buybacks in 2023 totaling $7 billion. .
Quinn said the bank’s stake in Bank of Communications suffered a “valuation adjustment” of $3 billion.
HSBC’s Hong Kong stock gave up about 1% of its gains after trading resumed, and fell as much as 3.2% in afternoon trading. The benchmark Hang Seng Index rose nearly 3%.
HSBC stock
Here are other highlights from the bank’s full-year 2023 financial report:
- Revenue in 2023 will grow 30% to $66.1 billion, while LSEG’s midpoint forecast is about $66 billion.
- Net interest margin, a measure of loan profitability, was 1.66%, compared with 1.48% in 2022.
- The common equity tier 1 capital ratio, which measures a bank’s capital relative to its assets, was 14.8%, compared with 14.2% in 2022.
- Basic earnings per share were $1.15, while LSEG forecast mid-point earnings per share of $1.28 in 2023 and 75 cents in 2022.
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