HSBC announces share buyback of up to $2 billion as annual profit jumps 6.5%

Europe’s largest lender HSBC on Wednesday reported annual pre-tax profit of $32.31 billion, marginally missing analysts’ estimates, as the bank’s net interest income declined by $3.1 billion from a year earlier.

For the full year, HSBC reported revenue of $65.85 billion, down from $66.1 billion in 2023.

Here are HSBC’s full-year results compared with LSEG mean estimates:

• Pre-tax profit: $32.31 billion vs. $32.63 billion
• Revenue: $65.85 billion vs. $66.52 billion

The bank’s profit before tax for the fourth quarter nearly doubled from a year earlier to $2.3 billion — the lender had incurred an impairment charge of $3 billion in fourth quarter last year impacting its performance. Revenue for the reported quarter declined 11% to $2.3 billion.

HSBC said it will repurchase up to $2 billion in shares, with the buyback expected to be completed by the end of their first quarter of 2025.

These are the lender’s first full-year results after Georges Elhedery was appointed the CEO of the London-headquartered bank in July last year, following the retirement of Noel Quinn.

Hong Kong-listed shares of the bank dipped 0.29% following the earnings release.

HSBC emphasized it would cuts costs by an annualized $1.5 billion by the end of 2026.

On Tuesday, HSBC dismissed about 40 investment bankers in Hong Kong, Reuters reported. The sectors hit hardest are reportedly M&A, consumer, real estate and resources and energy.

Last October, the bank revealed plans to reorganize its business into four units, separating its operations into an “Eastern markets” sector and a “Western markets” division.

“Our cost target includes the impact of simplification-related saves associated with our announced reorganization, which aims to generate approximately $0.3bn of cost reductions in 2025,” the statement read.

The bank is retaining a focus on cost discipline, HSBC said in its earnings statement.

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