Customers use automated teller machines (ATM) at an HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, Feb 16, 2019.
Anthony Kwan | Bloomberg | Getty Images
HSBC‘s full-year 2023 pre-tax profit missed analysts’ estimates on Wednesday, hit by impairment costs linked to the London-based lender’s stake in a Chinese bank.
Europe’s largest bank by assets saw its pre-tax profit climb about 78% to $30.3 billion in 2023 from a year ago, but missed median estimates of $34.06 billion from analysts tracked by LSEG.
Chief Executive Noel Quinn also announced an additional share buyback of up to $2 billion, while noting that the bank suffered “a valuation adjustment of $3 billion” on its stake in Bank of Communications.
HSBC’s Hong Kong shares went into the midday trading break up about 1%, compared with 3% gains for the Hang Seng Index. The bank’s shares have gained about 0.5% so far this year after jumping 23% in 2023 as the Hang Seng Index shed 14%.
HSBC shares
Here are the other highlights of the bank’s full year 2023 financial report card:
- Revenue for 2023 increased by 30% to $66.1 billion, compared with the median LSEG forecast for about $66 billion.
- Net interest margin, a measure of lending profitability, was 1.66% â compared with 1.48% in 2022.
- Common equity tier 1 ratio â which measures the bank’s capital in relation to its assets â was 14.8%, compared with 14.2% in 2022.
- Basic earnings per share was $1.15, compared with the median LSEG forecast for $1.28 in 2023 and 75 cents for 2022.
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