HSBC Pre-tax Profits Down 7 Percent In 2022

Banking giant HSBC on Tuesday announced a dip in 2022 pre-tax profits, calling the ongoing impact of Covid-19 the main factor in its financial performance.

The Asia-focused lender said it made US$17.5 billion before tax, down more than 7 percent on-year, while reported revenue increased 4 percent to US$51.7 billion.

In a statement to the Hong Kong stock exchange, HSBC detailed the tough global economic climate international banks are facing. It cited renewed virus outbreaks in Hong Kong and mainland China as denting last year's economic growth.

However, after-tax profits rose US$2 billion to US$16.7 billion.

"All of our businesses grew profits in 2022, and we maintained our strong capital, funding and liquidity positions," Mark Tucker, the group's chairman added.

The bank said last year reflected "a strong overall financial performance" and announced a full-year dividend of US$0.32 per share, as well as a special dividend of US$0.21 per share as a priority use of the proceeds from the US$10 billion sale of its Canada business, as well as more regular payouts and a fresh share buyback.

As for the fourth quarter, HSBC reported pre-tax earnings of US$5.2 billion, up from US$2.7 billion a year earlier.

Meanwhile, the bank said it still expects to complete the sale of its Russia business in first-half 2023, taking a US$300 million loss. (Agencies)