Catenaa, Wednesday, February 19, 2025 – HSBC released its annual performance on Wednesday. In 2024, the bank recorded a Profit After Tax(PAT) of $25 billion, exceeding market expectations as the bank battled losses from foreign currency and restructurings.
The profit before tax was recorded at $ 32.3 billion, rising by $ 2 billion from 2023, which includes a $ 4.8 billion on the disposal of banking business in Canada and a $ 1 billion loss from the disposal of business in Argentina.
The recycling of foreign currency reserve losses and other reserves amounted to $ 5.2 billion in 2024.
Also, an impairment of $ 3 billion on HSBC’s associate, Bank of Communications Co., Limited in 2023, disposal losses of $ 1 billion on Treasury repositioning and risk management and a $1.6 billion gain recognised on the acquisition of Silicon Valley Bank took the PAT to $ 24.6 billion to $ 25 billion.
“Our strong 2024 performance provides firm financial foundations upon which to build for the future, as we prioritise delivering sustainable strategic growth and the best outcomes for our customers,” Group CEO, Georges Elhedery, said…
“This includes creating four complementary, clearly differentiated businesses, aligning our structure to our strategy and reshaping our portfolio at pace and with purpose,” he added.
HSBC has also announced to $ 2 billion share buy-back, in addition to the $ 9 billion share buy-back it announced in 2024, this buy-back is expected to be completed by the first quarter of 2025.
HSBC expects to reduce its cost by $ 300 million in 2025 via the simplification-related saves associated with its announced reorganisation, which aims to an annualised reduction of $ 1.5 billion in its cost base by the end of 2026.
The London-based bank also expects to have Net Interest Income(NII) of around $ 42 billion in 2025 amidst a low interest rate environment, banking NII fell by 1% to $ 43.7 billion in 2024.
