HSBC reported a 95 per cent surge in its fourth-quarter profit before tax as rising interest rates around the globe boosted the net interest income of Europe’s biggest lender, putting it on course to achieve better returns next year.
Pre-tax income for the three months to the end of December climbed by $2.5 billion to $5.2 billion in the reporting period.
Adjusted profit before tax rose by 92 per cent to $6.8 billion, HSBC said on Tuesday.
The quarterly income beat the $4.96 billion average estimate of analysts compiled by the bank as net interest income jumped more than 41 per cent on an annual basis to $9.58 billion.
The bank had $1.4 billion impairments in the fourth quarter, close to triple the $500 million it reported in the same quarter last year.
The charge includes HSBC's exposures in mainland China's commercial property sector, as well as corporate exposures in the UK.
Reported revenue jumped 24 per cent on an annual basis to $14.9 billion, driven by strong growth in interest income and an increase in revenue from the lender’s markets and securities services businesses.
“2022 was another good year for HSBC. We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world,” said group chief executive Noel Quinn.
“This contributed to a strong overall financial performance. We are on track to deliver higher returns in 2023 and have built a platform for further value creation.”
The bank plans to pay a special dividend of $0.21 per share from the proceeds of $10 billion sale of its Canada business, once the deal is completed, Mr Quinn said.
The rise in borrowing costs has benefitted lenders globally as central banks seek to tame surging inflation.
The US Federal Reserve is expected to continue increasing its benchmark rates, although at a softer pace, as it aims to bring inflation from 40-year highs last year to its target range of 2 per cent.
However, despite a rise in its interest income, HSBC said its profit for the 12-month period to the end of December fell by $1.4 billion to $17.5 billion, dragged down by impairments worth $2.4 billion on the planned sale of its retail banking operations in France.
The bank’s reported revenue increased by 4 per cent annually to $51.7 billion, driven by interest income and higher revenue from its global foreign exchange operations.
HSBC's reported expected credit losses and other credit impairment charges were $3.6 billion, including allowances to reflect “increased economic uncertainty, inflation, rising interest rates and supply chain risks, as well as the ongoing developments in mainland China‘s commercial real estate sector”.
Looking forward, the lender said its growth and transformation programmes, and higher global interest rates, “give us confidence in achieving our return on average tangible equity target of at least 12 per cent for 2023 onwards”.
The bank’s revenue outlook remains positive for 2023 and it expects a net interest income of at least $36 billion this year.
ACC%20T20%20Women%E2%80%99s%20Championship
%3Cp%3E%3Cstrong%3EUAE%20fixtures%3C%2Fstrong%3E%3Cbr%3EFriday%2C%20June%2017%20v%20Oman%3Cbr%3ESaturday%2C%20June%2018%20v%20Singapore%3Cbr%3EMonday%2C%20June%2020%20v%20Malaysia%3Cbr%3EWednesday%2C%20June%2022%20v%20Qatar%3Cbr%3EFriday%2C%20June%2024%2C%20semi-final%3Cbr%3ESaturday%2C%20June%2025%2C%20final%3Cbr%3E%20%3Cbr%3E%3Cstrong%3EUAE%20squad%3A%3C%2Fstrong%3E%20Chaya%20Mughal%20(captain)%2C%20Esha%20Oza%2C%20Indhuja%20Nandakumar%2C%20Kavisha%20Kumari%2C%20Khushi%20Sharma%2C%20Lavanya%20Keny%2C%20Priyanjali%20Jain%2C%20Rithika%20Rajith%2C%20Samaira%20Dharnidharka%2C%20Sanchin%20Singh%2C%20Siya%20Gokhale%2C%20Suraksha%20Kotte%2C%20Theertha%20Satish%2C%20Vaishnave%20Mahesh%3C%2Fp%3E%0A
GROUP RESULTS
Group A
Results
Ireland beat UAE by 226 runs
West Indies beat Netherlands by 54 runs
Group B
Results
Zimbabwe tied with Scotland
Nepal beat Hong Kong by five wickets
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
World Sevens Series standing after Dubai
1. South Africa
2. New Zealand
3. England
4. Fiji
5. Australia
6. Samoa
7. Kenya
8. Scotland
9. France
10. Spain
11. Argentina
12. Canada
13. Wales
14. Uganda
15. United States
16. Russia
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
Killing of Qassem Suleimani
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENomad%20Homes%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2020%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EHelen%20Chen%2C%20Damien%20Drap%2C%20and%20Dan%20Piehler%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20and%20Europe%3Cbr%3E%3Cstrong%3EIndustry%3C%2Fstrong%3E%3A%20PropTech%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2444m%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Acrew%20Capital%2C%2001%20Advisors%2C%20HighSage%20Ventures%2C%20Abstract%20Ventures%2C%20Partech%2C%20Precursor%20Ventures%2C%20Potluck%20Ventures%2C%20Knollwood%20and%20several%20undisclosed%20hedge%20funds%3C%2Fp%3E%0A
Score
Third Test, Day 1
New Zealand 229-7 (90 ov)
Pakistan
New Zealand won the toss and elected to bat
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
KILLING OF QASSEM SULEIMANI
