Feb 22, 2022
HSBC more than doubles full-year pre-tax profit
The London-based bank said in an earnings statement on Tuesday that full-year pre-tax profits increased 115 per cent to $18.9bn, just missing forecasts of $19.1bn. The bank also revealed a dividend of $0.18 cents a share and a buyback worth up to $1bn to begin after the completion of its $2bn share repurchased announced in October. Revenue for the quarter rose 2 per cent compared with the same period a year ago, to $12bn, while adjusted profits before tax for the year came in at $21.9bn, a 79 per cent increase. On an annual basis, net operating income recovered 21.3 per cent to $50.48bn, as increases in fee income and income from assets for the bank's insurance business offset a slight decline in net interest income. Annual revenue fell 2 per cent to $49.6bn. HSBC's annual performance last year was a marked swing from 2020, when the bank's provisions for bad debts exceeded $8bn at the peak of coronavirus lockdowns, eventually pushing annual profit down 45 per cent to $12.1bn. HSBC is in the middle of a multiyear plan to redeploy $100bn of capital to Asia, trim $4.5bn in costs, cut thousands of jobs in Europe and the US and invest heavily in becoming a market leader in wealth management in Asia. HSBC shares fell 3.7 per cent in Hong Kong on Tuesday, roughly in line with losses of 3.3 per cent for the city's benchmark Hang Seng index.
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