A customer uses an automated teller machine (ATM) during the night at an HSBC Holdings bank branch in Hong Kong, China, Saturday, February 16, 2019.
Anthony Kwan | Bloomberg | Getty Images
HSBC full year 2023 (pre-tax) profit That was lower than analysts expected on Wednesday, hit by impairment charges related to the London-based bank’s stake in Chinese banks.
Europe’s largest bank by assets had forecast pre-tax profits of $30.3 billion in 2023, up about 78% from a year earlier, compared to the median forecast of $34.06 billion by analysts tracked by LSEG. It didn’t reach $10,000.
Chief Executive Officer Noel Quinn also announced an additional share buyback of up to $2 billion, noting that the bank had received a “$3 billion valuation adjustment” on its telecommunications bank stock.
HSBC’s Hong Kong shares rose about 1% in midday trading, while the Hang Seng index rose 3%. The bank’s shares are up about 0.5% so far this year after surging 23% in 2023 as the Hang Seng Index fell 14%.
Other highlights from the bank’s 2023 full-year financial report card include:
- Sales in 2023 rose 30% to $66.1 billion, compared to LSEG’s median estimate of about $66 billion.
- Net interest margin, a measure of loan profitability, was 1.66%, compared to 1.48% in 2022.
- The common equity Tier 1 ratio, which represents the bank’s capital to assets, was 14.8%, compared to 14.2% in 2022.
- Underlying earnings per share were $1.15, with LSEG’s median forecast of $1.28 in 2023 and 75 cents in 2022.
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