On February 21st, HSBC Holdings released its 2023 annual results, showing an increase of $8.3 billion in after tax profit to $24.6 billion. At the same time, the company stated that it plans to continue maintaining a medium-term target range of 14% to 14.5% for its common equity Tier 1 capital ratio. At the same time, the company also plans to launch a share buyback of up to $2 billion, which is expected to be completed before the release of the first quarter 2024 results.
According to the 2023 financial report, HSBC Holdings' revenue increased by $15.4 billion to $66.1 billion last year, a 30% increase, including an increase of $5.4 billion in net interest income. Under the trend of rising interest rates, the net interest income of all global businesses under the group has increased; Non interest income increased by $10 billion. Meanwhile, the board of directors of HSBC Holdings has approved the fourth dividend of $0.31 per share, with a total dividend of $0.61 per share for 2023.
In 2023, HSBC Group continued to drive regional diversification of profits in multiple markets, including seizing rapidly growing business opportunities in mainland China, India, Singapore, the United Arab Emirates, Saudi Arabia, and Mexico. It is reported that the above-mentioned markets achieved significant growth in benchmark profit in 2023, and mainland China (its own business), India, and Singapore each contributed profits of over 1 billion US dollars to the group.
HSBC Group CEO Qi Yaonian stated that HSBC Group recorded a record profit performance in 2023, allowing it to repay shareholders with the highest annual dividend since 2008, and to repurchase a total of $7 billion in shares three times last year, with further $2 billion in share repurchases planned. At the same time, HSBC Group has confidence in the resilience of the Chinese economy and the medium to long term growth opportunities.
In addition, looking ahead to 2024, HSBC Holdings stated that the company will continue to aim for an average tangible return on equity of approximately 15%, and expects net interest income from its banking business to reach at least $41 billion in 2024.
"Although HSBC Holdings remains cautious about its loan growth prospects for the first half of 2024, it still expects customer loans to grow at a median annual rate in the medium to long term." HSBC Holdings also stated that its target payout rate for 2024 will be maintained at 50%.