HSBC Holdings plc has reported its annual results for 2024, highlighting a strong financial performance. Group CEO Georges Elhedery stated, "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."
The bank's profit before tax increased by $2.0 billion to $32.3 billion, influenced by a net favorable impact from notable items amounting to $1.0 billion. These included a $4.8 billion gain from the sale of its banking business in Canada and impacts from the disposal of its business in Argentina.
Profit after tax rose by $0.4 billion to $25.0 billion. On a constant currency basis, profit before tax excluding notable items saw an increase of $1.4 billion to $34.1 billion, driven mainly by revenue growth in Wealth and Personal Banking (WPB) and Global Banking and Markets (GBM).
Revenue remained stable at $65.9 billion, with growth noted in customer activity within WPB and Equities and Securities Financing in GBM. Net interest income decreased by $3.1 billion due to business disposals and higher funding costs.
Operating expenses increased by 3% to $33.0 billion, primarily due to technology investments and inflation impacts, although reductions were seen from business disposals in Canada and France.
Customer lending balances fell by $8 billion on a reported basis but grew by $14 billion on a constant currency basis, while customer accounts rose significantly across all global businesses.
The Board approved a fourth interim dividend of $0.36 per share for 2024, including a special dividend of $0.21 per share, with plans for a share buy-back up to $2 billion.
Looking ahead, HSBC aims for mid-teens return on average tangible equity from 2025 to 2027 while targeting cost discipline with operating expenses expected to grow approximately 3% in 2025 compared with 2024.
The bank anticipates continued growth in customer lending balances over the medium term along with double-digit percentage average annual growth in fee and other income within Wealth.
For further details or inquiries regarding HSBC's financial performance or outlook, contact information is provided for media relations representatives Gillian James in the UK and Aman Ullah in Hong Kong, as well as investor relations contacts Neil Sankoff in the UK and Yafei Tian in Hong Kong.