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The bank’s pre-tax profit rose 6.5% for 2024, aided by the sale of its Canadian banking business, the report said.
The lender posted full-year revenue of $65.85 billion, slightly lower than $66.1 billion in 2023. Pre-tax profit came in at $32.31 billion.
Fourth-quarter pre-tax profit nearly doubled to $2.3 billion from a year ago. The increase came as HSBC avoided a repeat of last year’s $3 billion impairment charge. However, revenue for the quarter dropped 11% to $2.3 billion, as per the report.HSBC expects to complete the buyback by the first quarter of 2025.
Morningstar analyst Michael Makdad said the move aligns with market expectations. He added that HSBC’s cost-cutting plans for 2025 and 2026 are a positive development.The bank aims to reduce costs by $1.5 billion annually by 2026. It also forecasts net interest income of $42 billion in 2025, down from $43.7 billion in 2024.
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These results mark the first full-year earnings since Georges Elhedery took over as CEO in July 2023, replacing Noel Quinn.
Following the earnings release, HSBC’s Hong Kong-listed shares fell 0.29%.
On Tuesday (February 18), the bank laid off about 40 investment bankers in Hong Kong, Reuters reported. The hardest-hit sectors included M&A, consumer, real estate, and energy.
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