HSBC Holdings Limited (referred to as "HSBC Holdings") released its 2023 annual performance report on the 21st, stating that its pre tax profit increased by $13.3 billion to $30.3 billion compared to 2022, and its post tax profit increased by $8.3 billion to $24.6 billion.
In terms of revenue, it increased by $15.4 billion to $66.1 billion in 2023, a growth rate of 30%, 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 company has increased. Overall, the net interest yield is 1.66%, an increase of 24 basis points from 2022. In addition, non interest income increased by $10 billion in 2023.
Other financial indicators show that the Tier 1 capital ratio of common equity in 2023 was 14.8%, with a growth rate of 0.6 percentage points. Meanwhile, the company's board of directors has approved the fourth dividend of $0.31 per share, with a total dividend of $0.61 per share for 2023.
HSBC Group CEO Qi Yaonian said, "The group achieved a record breaking profit performance in 2023, allowing it to repay shareholders with the highest annual dividend since 2008. It also repurchased a total of $7 billion in shares three times last year, and will further carry out $2 billion in share repurchases. These all reflect the group's asset and liability strength in the global interest rate hike environment."
In 2023, HSBC Group continued to drive regional diversification of profits in multiple markets, including seizing rapidly growing business opportunities in markets such as China, India, Singapore, the United Arab Emirates, Saudi Arabia, and Mexico. It is reported that the business in mainland China (its own business), India and Singapore contributed over 1 billion US dollars to the group's profits that year.
"We have confidence in the resilience of the Chinese economy and the medium to long-term growth opportunities," said Qi Yaonian regarding the development prospects of the Chinese market
HSBC Holdings stated that in 2024, the company will aim to achieve an average tangible return on equity of approximately 15%, with an expected net interest income of at least $41 billion for its banking business in 2024. At the same time, the company will maintain a medium-term target range of 14% to 14.5% for its common equity Tier 1 capital ratio and a target dividend payout rate of 50% for 2024. It has previously announced further share repurchases of up to $2 billion.