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last yr.

HSBC Reports Record Profits but Faces Challenges from China's Economic Downturn

Despite achieving a record annual profit of $30.3 billion, HSBC's earnings were impacted by a $3 billion impairment from its stake in a Chinese bank amid the country's real estate crisis.

Overview

  • HSBC's annual profit rose to $30.3 billion, up 78% from the previous year, but missed analysts' forecasts due to a $3 billion charge related to its stake in China's Bank of Communications.
  • The bank's exposure to China's real estate downturn and economic challenges led to significant impairments, overshadowing its record earnings.
  • HSBC announced a new $2 billion share buyback program and plans for a special dividend, signaling confidence in its financial health despite recent challenges.
  • CEO Noel Quinn's pay doubled to $10.6 million in 2023, reflecting the bank's strong performance and long-term incentives.
  • HSBC remains cautious about the loan growth outlook for the first half of 2024, amid slowing economic growth and persistent inflation in many economies.