Banking giant HSBC pre-tax profits dip but full-year view held

LONDON: Major British bank HSBC on Tuesday reported a dip in profit before tax in 2022 but also an increase in revenue thanks to rising interest rates and good business in Asia, reported German news agency dpa.

The bank, which is mainly active in Asia, announced on Tuesday in London that profit before tax in 2022 fell by US$1.4 billion compared to the previous year to US$17.5 billion. Adjusted profit before tax increased by US$3.4 billion to US$24 billion, exceeding experts’ expectations.

The bottom line, however, was that the restructuring of the group, for example through a write-down on the business in France that was up for sale, slowed down the increase in profits.

Reported profit after tax increased by US$2 billion to US$16.7 billion, including a US$2.2 billion credit arising from the recognition of a deferred tax asset.

Reported revenue increased by 4 per cent to US$51.7 billion while adjusted revenue increased by 18 per cent to US$55.3 billion.

“2022 was another good year for HSBC,“ said Group Chief Executive Noel Quinn. “We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world.

“This contributed to a strong overall financial performance. We are on track to deliver higher returns in 2023 and have built a platform for further value creation. With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed.”

The bank in a statement said that it expected a net interest income of “at least” US$36 billion in 2023. -Bernama