HSBC has announced a share buyback plan of up to $2 billion, with the goal of completing it by the end of 2025. The bank’s annual pre-tax profit rose 6.5%, reaching $32.31 billion, although this was slightly below analyst estimates.
For the full year, HSBC reported revenue of $65.85 billion, down from $66.1 billion in 2023. The bank attributed this decline to the sale of its banking business in Canada and a one-time impairment charge incurred last year.
HSBC’s profit before tax nearly doubled in the fourth quarter, reaching $2.3 billion, but revenue declined 11% to $2.3 billion due to the same factors.
The bank expects to complete its share buyback plan by the end of 2025 and plans to cut costs by an annualized $1.5 billion by the end of 2026.
In a statement, CEO Georges Elhedery said that HSBC is creating a “simple, more agile, focused bank” with four complementary businesses, which will help reduce costs and improve efficiency.
The reorganization is expected to generate about $300 million in cost reductions in 2025. The bank’s Hong Kong-listed shares dipped 0.29% following the earnings release.
Source: https://www.cnbc.com/2025/02/19/hsbc-q4-2024-earnings.html