HSBC, Europe's largest lender, reported an annual pre-tax profit of $32.31 billion, slightly below analysts' expectations. Despite the marginal shortfall, the bank's shares in Hong Kong experienced a substantial gain of over 23% last year, as per LSEG data. The bank's revenue for the full year recorded at $65.85 billion, showing a slight decline from the previous year’s $66.1 billion. This financial update marks the first full-year results under the leadership of CEO Georges Elhedery, who took over in July after Noel Quinn's retirement.
Georges Elhedery, previously the chief financial officer, has steered the bank through a period of strategic reorganization. In October, HSBC announced plans to restructure its business into four distinct units, dividing operations between an "Eastern markets" sector and a "Western markets" division. This move underscores the bank's commitment to cost discipline and efficient management amidst a challenging economic landscape.
The bank's fourth-quarter performance was notably strong, with profit before tax nearly doubling from the previous year to $2.3 billion. However, the release of the earnings report led to a slight dip of 0.29% in Hong Kong-listed shares. The minor downturn did little to overshadow the overall positive trajectory seen last year.
Despite these gains, HSBC faced some challenges and made strategic decisions in response. Reuters reported that the bank dismissed around 40 investment bankers in Hong Kong, reflecting its emphasis on maintaining cost efficiency. This decision aligns with their stated focus on cost discipline, as noted in their earnings statement.
HSBC's financial performance shows both stability and areas for improvement. The pre-tax profit for the full year was $32.31 billion, slightly down from $32.63 billion in 2023. Similarly, revenue dipped to $65.85 billion from $66.52 billion in the previous year. These figures highlight a slight contraction but also underline the bank’s resilience in navigating complex market conditions.