The financial behemoth HSBC announced on Wednesday that it had made a “record profit” in 2023 due to a nearly eighty percent increase in pre-tax income. The bank also announced more share buybacks.
Although higher interest rates have helped the lender with an emphasis on Asia and its peers for more than a year, they are expecting increased economic uncertainty in 2024.
In a statement to the Hong Kong stock exchange, HSBC announced pre-tax profits of $30.3 billion, up from $17.1 billion in the previous year.
To $24.6 billion, profit after taxes climbed by $8.3 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.
According to HSBC, the sale of its French retail banking operations resulted in a $2.5 billion “favourable year-on-year impact” to the company’s profits. Additionally, a $1.6 billion provisional gain was recognized on the acquisition of Silicon Valley Bank UK.
An impairment charge connected to its affiliate Bank of Communications’ investment somewhat negated the gains.
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”.
