HSBC, Europe’s largest lender, reported an annual pre-tax profit of $32.31 billion on February 19, 2025, slightly below analysts’ expectations. The bank’s revenue for the year was $65.85 billion, a decrease from $66.1 billion in 2023, attributed to a decline in net interest income.
- HSBC reports $32.31 billion pre-tax profit.
- Revenue declines to $65.85 billion in 2024.
- Fourth-quarter profit nearly doubles to $2.3 billion.
- $2 billion share buyback planned by HSBC.
- Cost-cutting measures aim for $1.5 billion savings.
- Reorganization into four business units announced.
HSBC’s financial performance reflects challenges in the banking sector, with a notable decline in net interest income of $3.1 billion compared to the previous year. The bank’s profit before tax for the fourth quarter nearly doubled to $2.3 billion, rebounding from a $3 billion impairment charge incurred in the same quarter last year. However, revenue for this quarter dropped 11% to $2.3 billion.
Key financial figures from HSBC’s report include:
- Pre-tax profit: $32.31 billion vs. $32.63 billion (analysts’ estimate)
- Revenue: $65.85 billion vs. $66.52 billion (analysts’ estimate)
In response to its financial position, HSBC announced a share buyback of up to $2 billion, expected to be completed by the end of the first quarter of 2025. The bank also outlined plans to reduce costs by an annualized $1.5 billion by the end of 2026. This restructuring aligns with CEO Georges Elhedery’s strategy to create a more agile organization, separating operations into Eastern and Western markets.
Overall, HSBC’s results indicate a complex landscape for the banking sector, with efforts to streamline operations and enhance profitability amid declining revenues. The bank’s strategic initiatives could position it for future growth, although challenges remain in the current economic environment.
