HSBC profits soar in 2023, announces share buyback despite geopolitical, economic concerns
livemint.comHSBC noted the effects of China's slower-than-expected economic recovery after the Covid-19 pandemic as well as heightened geopolitical tensions. The firm 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 also 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. "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, China's Bank of Communications. Revenue rose by 30 percent to $66.1 billion, HSBC said, citing "rises in all of our global businesses due to the higher interest rate environment".
Shares of HSBC in Hong Kong dipped by more than three percent at the start of afternoon trading on Wednesday. Quinn said the bank remains "confident in the resilience of the Chinese economy, and the growth opportunities in mainland China over the medium to long term". Group chairman Mark Tucker noted that China's recovery after reopening was "bumpier than expected", and that the five percent growth target of the world's
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