HSBC full-year profit jumps 78% thanks to record high gain on interest rates

HSBC has reported a 78% jump in full-year pre-tax profit, resulting in a record-high gain on high interest rates.

It did, however, miss forecasts due to a three billion dollar impairment from its stake in a Chinese bank, the Bank of Communications.

The London-headquartered bank, with a market value of 160 billion dollars, reported a total pre-tax profit of 30.3 billion dollars for 2023.

The year prior, the bank reported 17.5 billion dollars for 2022.

HSBC Group chief executive Noel Quinn said: “Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008, three share buy-backs last year totalling seven billion and a further share buy-back of up to two billion dollars.

“This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.

Mr Quinn added: “We have a strong platform for growth with the opportunities that exist within our two home markets and across our international wholesale, market-leading transaction banking, and wealth management businesses.

“We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024.”