UK-based bank holding company HSBC has reported a net profit of $22.43bn, or $1.14 per diluted share, for the full year ended 31 December 2023, a 56% rise compared to $14.34bn or $0.72 per diluted share for the full year ended 31 December 2022.
The company reported a profit before tax of $30.34bn for 2023, a 77% increase compared to $17.05bn for 2022.
The UK lender’s revenue for the reported period was $66.05bn, a 30% increase compared to $50.62bn for 2022.
HSBC reported operating expenses of $32.07bn for 2023, a 2% increase compared to $32.70bn for 2022.
The company reported a net interest income of $35.79bn for 2023, an 18% increase compared to $30.37bn for 2022.
HSBC Group CEO Noel Quinn said: “Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008, three share buy-backs last year totalling $7bn, and a further share buy-back of up to $2bn.
“This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.
“We have a strong platform for growth with the opportunities that exist within our two home markets and across our international wholesale, market-leading transaction banking, and wealth management businesses.
“We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024.”
HSBC’s Wealth and Personal Banking business reported a profit before tax of $11.54bn for 2023, a 110% rise compared to $5.48bn for 2022.
The UK lender’s Commercial Banking unit reported a profit before tax of $13.28bn for 2023, a 76% increase compared to $7.52bn for 2022.
The company’s Global Banking and Markets business reported a profit before tax of $5.92bn for 2023, a 26% increase compared to $4.68bn for 2022.
HSBC Corporate Centre reported a loss before tax of $400m for 2023, compared to a loss before tax of $1.2m for 2022.
HSBC Group chairman Mark E Tucker said: “The global economy performed better than expected in 2023, but growth remained sluggish and the economic environment was challenging for many of our customers.
“Although inflation fell globally, core inflation levels and interest rates remained elevated. There was also significant variability in growth from market to market and increased volatility within the banking sector.
“Our core purpose of ‘opening up a world of opportunity’ underlines our focus on helping our customers and clients to navigate this complexity and access growth, wherever it is.”
Recently, HSBC partnered with Google Cloud to advance climate mitigation and resilience through the Google Cloud Ready-Sustainability (GCR-Sustainability) programme.
