HSBC, the biggest commercial lender in Hong Kong, on Wednesday reported a weaker than expected profit for 2024, as gains from its wealth-management business and cost savings from restructuring offset the impact of interest-rate cuts.
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Net profit rose 2.2 per cent to US$22.9 billion or US$1.25 per share from US$22.4 billion a year earlier, the lender said in a Hong Kong stock exchange filing. The outcome was below the US$24.1 billion consensus among analysts tracked by Bloomberg.
Pre-tax profit increased 6.6 per cent to US$32.3 billion from US$30.3 billion the previous year. This was higher than market estimates of US$31.7 billion.
HSBC also announced a new US$2 billion share buy-back programme, matching the same amount a year earlier. The bank will pay US$0.36 dividend per share for the final quarter of 2024, bringing the total for the year to US$0.87 versus US$0.61 in 2023.
“Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy,” CEO Georges Elhedery said in the filing. “We are creating a simple, more agile, focused bank built on our core strengths.”
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