HSBC pre-tax annual profit jumps 78%, misses market estimates

February 21, 2024 | 12:17am

HSBC pre-tax annual profit jumps 78%, misses market estimates

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Customers use automated teller machines (ATM) at an HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, Feb 16, 2019.Anthony Kwan | Bloomberg | Getty Images

HSBC reported on Wednesday its full year 2023 pre-tax profit climbed about 78% to $30.3 billion from a year ago, missing median estimates of $34.06 billion from analysts tracked by LSEG.

Its Hong Kong shares went into the midday trading break up about 1%, compared with 3% gains for the Hang Seng Index. The bank's shares have gained about 0.5% so far this year after jumping 23% in 2023 as the Hang Seng Index shed 14%.

HSBC shares

Here are the other highlights of the bank's full year 2023 financial report card:

Revenue for 2023 increased by 30% to $66.1 billion, compared with the median LSEG forecast for about $66 billion.
Net interest margin, a measure of lending profitability, was 1.66% — compared with 1.48% in 2022.
Common equity tier 1 ratio — which measures the bank's capital in relation to its assets — was 14.8%, compared with 14.2% in 2022.
Basic earnings per share was $1.15, compared with the median LSEG forecast for $1.28 in 2023 and 75 cents for 2022.

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This story originally appeared on: CNBC - Author:Clement Tan