HSBC Holdings PLC (LON:HSBA) posted a 6.6% rise in annual profit, driven by gains from its wealth management and trading divisions, despite a decline in net interest income (NII). The bank also announced a new $2 billion share buyback, reinforcing its commitment to shareholder returns.
Key Financial Highlights
- Profit before tax: $32.3 billion in 2024 (up 6.6% from $30.3 billion in 2023).
- Excluding notable items: Profit rose $1.4 billion to $34.1 billion.
- Net interest income (NII): Fell by $3.1 billion to $32.7 billion, reflecting higher deposit costs and asset sales.
- 2025 NII Forecast: HSBC expects $42 billion in NII, but margin pressure remains.
- Dividends: A fourth interim dividend of $0.36 per share, bringing total 2024 payout to $0.87 per share, including a special dividend from its Canada business sale.
HSBC’s Strategic Focus
CEO Georges Elhedery is pushing cost restructuring, aiming to cut $1.5 billion in annual expenses by 2026. The bank’s share buybacks totaled $9 billion in 2024, reducing its share count by 11% since early 2023.
Market Reaction & Outlook
- HSBC’s Hong Kong-listed shares dipped 0.3% post-earnings.
- Investors remain cautious as margin pressure and cost reductions continue to shape HSBC’s future.
Relevant Financial APIs for Analysis
Conclusion
HSBC’s solid earnings growth, aggressive cost management, and capital returns demonstrate financial strength, but declining NII remains a concern for investors. The bank’s 2025 performance will hinge on margin stabilization and strategic cost cuts.
