HSBC Reports $32 Billion Profit Before Tax in 2024, 7% Growth
HSBC, the British bank, announced that its annual pre-tax profits increased by 6.6%, reaching $32.3 billion in 2024, compared to $30.3 billion in 2023. This growth was supported by the sale of its banking operations in Canada.
The bank also stated that it aims to reduce costs by $1.5 billion by the end of 2026. Under the leadership of CEO Georges Chidiac, HSBC has undergone significant changes in recent months, including a major restructuring plan aimed at reducing costs and focusing on the more profitable areas of its business.
The restructuring plan is expected to reduce costs by $0.3 billion in 2025, with an annual cost-cutting target of $1.5 billion by the end of 2026. The bank’s after-tax profits rose by $400 million, reaching $25 billion.
In the fourth quarter of 2024, HSBC’s pre-tax profit increased by $1.3 billion, reaching $2.3 billion compared to the same period in 2023. Full-year revenue remained stable at $65.9 billion, down from $66.1 billion in 2023, while operating expenses rose by $1 billion.
HSBC also announced a $2 billion share buyback program and expects to complete the buyback by the end of the first quarter of 2025. However, its shares listed in Hong Kong dropped by 0.29% following the earnings report.
Additionally, Reuters reported that HSBC has fired around 40 investment bankers in Hong Kong, with the hardest-hit sectors being mergers and acquisitions, consumer, real estate, and resources and energy.
In October, HSBC had announced it would integrate some of its commercial and investment banking operations as part of a major restructuring plan led by CEO Georges Chidiac, which also includes cost-cutting efforts aimed at improving revenue. The group is dividing its operations into four main segments: the UK, Hong Kong, corporate and institutional banking, and wealth management.
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