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- HSBC Holdings (NYSE:HSBC) reported FY profit before tax that rose by $13.3B to $30.3B, primarily reflecting revenue growth, reaffirms FY24 financial targets and announces a further share buy-back of up to $2.0B.
- On a constant currency basis, profit before tax increased by $13.8B to $30.3B. Profit after tax increased by $8.3B to $24.6B.
- GAAP EPS of $1.14.
- Revenue of $66.1B (+30.6% Y/Y).
- Net interest margin of 1.66% increased by 24 basis points, reflecting higher interest rates.
- Expected credit losses and other credit impairment charges were $3.4B, a reduction of $0.1B.
- Common equity tier 1 capital ratio of 14.8% rose by 0.6 percentage points.
- “We also intend to initiate a share buy-back of up to $2.0bn, which we expect to complete by our first quarter 2024 results announcement.”
- Outlook: “We continue to target a return on average tangible equity in the mid-teens for 2024.
- We expect banking NII of at least $41bn for 2024. While our outlook for loan growth remains cautious for the first half of 2024, we continue to expect year-on-year customer lending percentage growth in the mid-single digits over the medium to long term.
- We expect ECL charges as a percentage of average gross loans to be around 40bps in 2024 (including customer lending balances transferred to held for sale).
- We are targeting cost growth of approximately 5% for 2024 compared with 2023, on a target basis.
- We intend to continue to manage the CET1 capital ratio within our medium-term target range of 14% to 14.5%. –
- Our dividend payout ratio target remains at 50% for 2024, excluding material notable items and related impacts. We have announced a further share buy-back of up to $2.0bn. Further buy-backs remain subject to appropriate capital levels.”