HSBC profit beats forecasts despite one-off charges
HSBC Holdings lifted a key earnings target after its annual profit beat expectations, signaling confidence in further growth following a major bank overhaul.
Europe’s largest lender posted a pretax profit of $29.9 billion last year, down 7% due to $4.9 billion in one-off charges, including a $2.1 billion write-off linked to China’s Bank of Communications and $1.4 billion in legal provisions. Despite the dip, results exceeded analyst forecasts by about $1 billion, News.Az reports, citing Reuters.
HSBC CEO Georges Elhedery said the bank is now “simpler, more agile, and focused for a fast-changing world.” The bank raised its target return on tangible equity to “17% or better” through 2028, up from a mid-teens goal. Last year, the figure came in at 13.3%.
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Following the results, HSBC’s Hong Kong-listed shares rose 2.5%. The bank also aims for $900 million in pretax synergies from its $13.7 billion Hang Seng Bank acquisition, though restructuring costs of $600 million are expected. A final dividend of 45 cents per share was announced, supplementing 30 cents paid earlier.
By Aysel Mammadzada
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