19th Feb 2025 05:10
(Alliance News) - HSBC Holdings PLC on Wednesday lifted its dividend and reported an increase in full year profit, supported by lower impairment charges.
The London-based bank said pretax profit increased 6.5% to USD32.31 billion in 2024 from USD30.35 billion a year prior.
Diluted earnings per share was USD1.24, up 8.8% from USD1.14.
Revenue fell 0.3% to USD65.85 billion from USD66.06 billion as operating expenses increased 3.0% to USD33.04 billion from USD32.07 billion.
HSBC faced no charges relating to an impairment of an interest in an associate, contrasting with a USD3.00 billion charge last year.
Net interest income fell 8.6% to USD32.73 billion from USD35.80 billion, while net fee income rose 3.8% to USD12.30 billion from USD11.85 billion.
The bank lifted its final dividend by 16% to USD0.36 per share from USD0.31 previously. The total dividend therefore amounted to USD0.87 per share, up 43% from USD0.61.
Additionally, HSBC said it intends to carry out a USD2 billion share buyback programme, which is expected to complete before the bank issues its first quarter 2025 results.
Chief Executive Officer Georges Elhedery said: "Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy. We are creating a simple, more agile, focused bank built on our core strengths. We continue to take deliberate and decisive steps.
"This includes creating four complementary, clearly differentiated businesses, aligning our structure to our strategy and reshaping our portfolio at pace and with purpose. I have put in place a smaller, core team of exceptionally talented leaders driven by a growth orientated mindset and a firm focus on dynamically managing our costs and capital."
Looking ahead HSBC said it is targeting mid-teens return on average tangible equity in each of the three years from 2025 to 2027.
In 2025 the bank aims to reduce costs by approximately USD300 million and commits to an annualised reduction of USD1.5 billion in its cost base by the end of 2026.
HSBC shares closed 1.8% higher at 897.20 pence each in London on Tuesday.
By Elijah Dale, Alliance News reporter
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