HSBC reported pre-tax earnings of $5.2bn for the ultimate three months of final yr, surpassing analysts’ expectations, and stated it might contemplate handing shareholders a particular dividend when it completes the sale of its Canadian enterprise.
The London-listed financial institution’s earnings rose greater than 90 per cent from the identical interval a yr earlier as increased rates of interest boosted revenues.
Nonetheless, the financial institution’s pre-tax revenue for the total yr fell by $1.4bn, partly due to an impairment on the deliberate sale of its retail banking operations in France.
Chief government Noel Quinn stated “2022 was one other good yr for HSBC”, including: “We accomplished the primary section of our transformation and our worldwide connectivity is now underpinned by good, broad-based revenue technology world wide.”
The financial institution has authorized complete dividends of 32 cents per share for 2022, and stated the particular dividend could be a “precedence use of the proceeds” from the sale of its Canadian enterprise to Royal Financial institution of Canada for $10bn.
Web curiosity earnings rose to $32.6bn for the total yr, up from $26bn in 2021, an indication of how far rising rates of interest have helped increase banks’ earnings. HSBC, one of many world’s largest deposit-taking establishments, is especially delicate to adjustments in charges.
The financial institution reported $3.6bn in anticipated credit score losses and different impairments for the yr, which it stated mirrored “elevated financial uncertainty [from] inflation, rising rates of interest and provide chain dangers” in addition to China’s actual property disaster.