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.

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.

South China Morning Post

CNA

CNBC