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 $32.31 billion in 2024 from $30.35 billion a year prior.
Diluted earnings per share was $1.24, up 8.8% from $1.14.
Revenue fell 0.3% to $65.85 billion from $66.06 billion as operating expenses increased 3.0% to $33.04 billion from $32.07 billion.
HSBC faced no charges relating to an impairment of an interest in an associate, contrasting with a $3.00 billion charge last year.
Net interest income fell 8.6% to $32.73 billion from $35.80 billion, while net fee income rose 3.8% to $12.30 billion from $11.85 billion.
The bank lifted its final dividend by 16% to $0.36 per share from $0.31 previously. The total dividend therefore amounted to $0.87 per share, up 43% from $0.61.
Additionally, HSBC said it intends to carry out a $2 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 $300 million and commits to an annualised reduction of $1.5 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.
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