HSBC (LSE: HSBA) has delivered a predictable mix of solid profits, a dividend hike, and another share buyback—moves that will please shareholders but won’t shock anyone paying attention.
The bank’s pre-tax profit climbed 6.5% to $32.31 billion in 2024, helped by lower impairment charges. That’s up from $30.35 billion a year ago. Diluted earnings per share followed suit, rising 8.8% to $1.24.
Revenue, however, dipped slightly by 0.3% to $65.85 billion, while operating expenses edged 3% higher to $33.04 billion. Net interest income—a key driver of bank earnings—dropped 8.6% to $32.73 billion, though a 3.8% rise in fee income helped offset some of the decline.
For investors, the real headline is the payout. HSBC lifted its final dividend by 16% to $0.36 per share, bringing the total for the year to $0.87—an impressive 43% increase. On top of that, a $2 billion share buyback will be completed before the bank’s Q1 2025 results.
CEO Georges Elhedery, keen to stamp his mark, spoke of making HSBC “simpler, more agile” and “reshaping our portfolio at pace.” The bank is targeting mid-teens returns on tangible equity from 2025 to 2027, alongside $300 million in cost cuts this year and a deeper $1.5 billion annualised reduction by the end of 2026.
Shares closed 1.8% higher on Tuesday but barely moved post-announcement. Investors had already seen this coming.
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