HSBC's $3 billion China write down mars record annual profit
HSBC Holdings , opens new tab reported a record annual profit, that nonetheless came in below analysts' forecasts as the income boost from higher interest rates was offset by a hefty $3 billion charge from its stake in a Chinese bank.
- Feb 21, 2024,
- Updated Feb 21, 2024 1:04 PM IST
HSBC Holdings, opens new tab reported a record annual profit, that nonetheless came in below analysts' forecasts as the income boost from higher interest rates was offset by a hefty $3 billion charge from its stake in a Chinese bank.
HSBC, which has a market value of $160 billion, reported on Wednesday a pretax profit of $30.3 billion for 2023, up 78% from a year earlier but worse than a $34.1 billion broker estimate.
The British lender rewarded investors with a fresh $2 billion share buyback, and said it would consider a special dividend of $0.21 per share in the first half of 2024 once its Canada disposal is complete.
However, the record-high annual profit was marred by a $3 billion impairment on the bank's stake in China's Bank of Communications .The bank's Hong Kong-listed shares fell 3.4% in afternoon trade.
Rival Standard Chartered in October took a nearly $1 billion hit on its own China bank stake, as widening loan losses compress lenders' profits.
"China's recovery after reopening (following the pandemic) was bumpier than expected, but its economy grew in line with its annual target of around 5% in 2023," Chairman Mark Tucker said in a release.
The biggest European lender said it remains cautious for the loan growth outlook in the first half of 2024, against slowing economic growth in many economies where inflation persisted.
HSBC Holdings, opens new tab reported a record annual profit, that nonetheless came in below analysts' forecasts as the income boost from higher interest rates was offset by a hefty $3 billion charge from its stake in a Chinese bank.
HSBC, which has a market value of $160 billion, reported on Wednesday a pretax profit of $30.3 billion for 2023, up 78% from a year earlier but worse than a $34.1 billion broker estimate.
The British lender rewarded investors with a fresh $2 billion share buyback, and said it would consider a special dividend of $0.21 per share in the first half of 2024 once its Canada disposal is complete.
However, the record-high annual profit was marred by a $3 billion impairment on the bank's stake in China's Bank of Communications .The bank's Hong Kong-listed shares fell 3.4% in afternoon trade.
Rival Standard Chartered in October took a nearly $1 billion hit on its own China bank stake, as widening loan losses compress lenders' profits.
"China's recovery after reopening (following the pandemic) was bumpier than expected, but its economy grew in line with its annual target of around 5% in 2023," Chairman Mark Tucker said in a release.
The biggest European lender said it remains cautious for the loan growth outlook in the first half of 2024, against slowing economic growth in many economies where inflation persisted.