HSBC Q4 Profit Soars, Plans Dividends; Backs Positive View For FY23

(RTTNews) – Banking major HSBC Holdings plc reported Tuesday that its fourth-quarter profit nearly doubled from last year, with strong revenue growth. The company also announced a final dividend for fiscal 2022, and plans a special dividend. Looking ahead, the company maintained its positive revenue outlook for fiscal 2023.

Noel Quinn, Group Chief Executive, said, “We are on track to deliver higher returns in 2023 and have built a platform for further value creation. With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed.”

For fiscal 2023, the company continues to expect net interest income of at least $36 billion.

In fiscal 2022, net interest income was $32.6 billion, a growth of 31 percent from the previous year. Adjusted revenue of $55.3 billion grew 18 percent, while profit before tax fell 7 percent to $17.5 billion.

Further, HSBC issued cautious outlook on loan growth in the short term, and continue to expect mid-single digit percentage annual loan growth in the medium to long term. In fiscal 2022, loan growth was 1 percent.

HSBC’s Board has approved a second interim dividend of $0.23 per share, making a total for 2022 of $0.32 per share.

Subject to the completion of the sale of banking business in Canada, the Board plans to consider the payment of a special dividend of $0.21 per share as a priority use of the proceeds generated by completion of the deal. A decision is currently expected in late 2023, with payment following in early 2024.

In its fourth quarter, profit before tax went up 95 percent to $5.21 billion from last year’s $2.66 billion, reflecting strong revenue growth and lower operating expenses.

Profit attributable to ordinary shareholders was $4.62 billion, significantly higher than prior year’s $1.79 billion.

Adjusted profit before tax was $6.83 billion, compared to $3.56 billion a year ago.

The results reflected strong net interest income growth of 53 percent from last year to $9.57 billion, and 20 percent rise in non-net interest income.

Revenue went up 24 percent to $14.9 billion from last year’s $12 billion, due to strong growth in net interest income and an increase in revenue from Markets and Securities Services. Adjusted revenue climbed 38 percent to $15.35 billion from $11.09 billion last year.

In London, HSBC shares were trading at 625 pence, up 0.7 percent. In pre-market activity on the NYSE, the shares were up 0.9 percent to trade at $37.67.

In Hong Kong, the shares closed trading at HK$57.60, down 1.96 percent.

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