Vertiv Introduces New Single-Phase Uninterruptible Power Supply for Distributed Information Technology (IT) Networks and Edge Computing Applications in Europe, Middle East, and Africa (EMEA)Read more Students from JA Zimbabwe Win 2023 De La Vega Global Entrepreneurship AwardRead more Top International Prospects to Travel to Salt Lake City for Seventh Annual Basketball Without Borders Global CampRead more Rise of the Robots as Saudi Arabia Underscores Global Data and Artificial Intelligence (AI) Aspirations with DeepFest Debut at LEAP23Read more Somalia: ‘I sold the last three goats, they were likely to die’Read more Merck Foundation and African First Ladies marking World Cancer Day 2023 through 110 scholarships of Oncology Fellowships in 25 countriesRead more Supporting women leaders and aspirants to unleash their potentialRead more Fake medicines kill almost 500,000 sub-Saharan Africans a year: United Nations Office on Drugs and Crime (UNODC) reportRead more Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more

HSBC says pre-tax profits slip to $17.5 bn in 2022

show caption
HSBC chief executive Noel Quinn said the bank was 'on track to deliver higher returns in 2023'./AFP
Print Friendly and PDF

Feb 21, 2023 - 12:36 PM

HONG KONG, CHINA — Banking giant HSBC on Tuesday announced a dip in 2022 pre-tax profits last year, calling the ongoing impact of Covid-19 the main factor in its financial performance.

The Asia-focused lender said it made $17.5 billion before tax, down more than seven percent on-year, while reported revenue increased four percent to $51.7 billion.

In a statement to the Hong Kong stock exchange, HSBC detailed the tough global economic climate international banks are facing.

It cited renewed virus outbreaks in Hong Kong and mainland China as denting last year’s economic growth.

It added that global uncertainty sparked by Russia’s invasion of Ukraine, elevated inflation and rising interest rates contributed to a difficult financial environment that it expects will spill into 2023’s earnings and even eclipse the toll of the pandemic.

“We are already seeing… a cost of living crisis affecting many of our customers and colleagues,” Mark Tucker, the group’s chairman said in a statement.

However, after-tax profits rose $2 billion to $16.7 billion, while fourth-quarter pre-tax profit nearly doubled from $2.5 billion to $5.2 billion.

“All of our businesses grew profits in 2022, and we maintained our strong capital, funding and liquidity positions,” Tucker added.

The bank said last year reflected “a strong overall financial performance”, and announced a full-year dividend of $0.32 per share.

At an event last month, Tucker said China’s reopening and latest measures to stabilise its turbulent property market “will be positive for both its economy and the global economy”.

The lender has vowed to accelerate a multi-year pivot to Asia and the Middle East, and its ambitions to lead Asia’s wealth management market has shown early signs of success.

In November, the bank agreed to sell its Canadian division for $10.1 billion, saying it would use the funds to invest in its core business and return cash to investors.

The Canadian sale comes after a months-long campaign by HSBC’s biggest shareholder and Chinese insurance giant Ping An to cut costs and shift more resources to Asia.

Ping An has argued that spinning off HSBC’s Asian operations will unlock shareholder value amid tensions between China and Western powers, though the bank has rejected the move.

“It has been, and remains, our judgement that alternative structural options would not deliver increased value for shareholders,” Tucker said.

Chief executive Noel Quinn said the bank was focused on delivering a returns target of at least 12 percent for next year as well as keeping costs down.

“We are on track to deliver higher returns in 2023 and have built a platform for further value creation,” Quinn said.

LMBCNEWS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.