On Wednesday, HSBC said it achieved nearly 80 percent increase in pre tax profit in 2023, with the banking giant also announced further share buyback. It 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.
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.
Despite bumper profits, HSBC noted the effects of China’s slower-than-expected economic recovery after the Covid-19 pandemic as well as heightened geopolitical tensions.
Profit after tax increased by $8.3 billion, to $24.6 billion, while revenue rose by 30 percent to $66.1 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.
“This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.”
The bank said Wednesday that it would initiate a share buyback of up to $2 billion, following the announcement last year of three share buybacks totalling $7 billion.
It also announced a fourth quarterly dividend of $0.31 per share, bringing the total dividend for 2023 to $0.61 per share.
