2019-03-05 14:13Financial Performance - The reported pre-tax profit for 2018 reached $19.9 billion, a 16% increase from $17.2 billion in 2017, while the adjusted pre-tax profit was $21.7 billion, up 3% from $21.1 billion in 2017[15]. - The reported revenue for 2018 was $53.78 billion, up $2.33 billion or 5% from 2017, driven by growth across global business revenues[55]. - The net profit for the year 2018 reached $15,025 million, up from $11,879 million in 2017, reflecting a significant increase of 26.00%[159]. - The total dividend per ordinary share remained stable at $0.51 for both 2018 and 2017, with a payout ratio of 81.0%[160]. - The adjusted pre-tax profit for 2018 was $21.719 billion, an increase of $0.6 billion or 3% compared to 2017[63]. - The effective tax rate decreased to 24.5% in 2018 from 30.8% in 2017, primarily due to the revaluation of deferred tax balances following the reduction of the U.S. federal tax rate[197]. Asset and Liability Management - The total assets of HSBC as of December 31, 2018, amounted to $2.6 trillion, making it one of the largest banking and financial services institutions globally[12]. - The total liabilities as of December 31, 2018, were $2,363,875 million, compared to $2,323,900 million in 2017, indicating an increase of 1.7%[198]. - Shareholders' equity totaled $194,249 million at the end of 2018, down from $197,871 million in 2017, representing a decrease of 1.3%[198]. - Risk-weighted assets amounted to $865.318 billion[200]. Customer Engagement and Services - The company served approximately 39 million customers globally, with a focus on retail banking and wealth management[13]. - Approximately 45% of personal customers are active digital banking users, with over 30% of sales achieved through electronic channels[51]. - Customer satisfaction rankings maintained top three positions or improved in six retail banking and wealth management markets, and three commercial banking markets[51]. - The average time required for customers to open accounts in commercial banking was reduced by half to 11 days[49]. Sustainable Financing and Development - HSBC committed to providing $100 billion in financing and investment for sustainable development by the end of 2025[3]. - The company completed $28.5 billion in sustainable financing and investment globally, with an increase of $17.4 billion in 2018[51]. - HSBC aims to achieve 100% renewable energy usage by 2030, with a mid-term target of 90% by 2025; currently, signed renewable energy purchase agreements cover 29% of electricity consumption, an increase of 2 percentage points from 2017[114]. - HSBC's commitment to sustainable financing reflects its role in supporting the transition to a low-carbon economy and achieving sustainable development goals[112]. Technology and Innovation - The company is investing in digital technology to enhance services, including the launch of an award-winning mobile application[3]. - The group has invested in technology to enhance service efficiency, security, and user-friendliness, particularly in mainland China and Hong Kong[24]. - The company continues to invest in electronic banking services, with an additional $100 million allocated to enhance customer experience and operational efficiency[89]. - HSBC launched biometric authentication technology in 18 markets, simplifying login procedures, with 85% of new customers in the UK opening accounts through electronic banking services in 2018[101]. Employee Engagement and Corporate Governance - The group aims to improve employee performance and engagement as a key element of its business strategy, recognizing employees as crucial to future success[22]. - HSBC's employee recommendation rate as an ideal workplace increased to 66% in 2018, up from 64% in the previous year, indicating positive employee feedback[28]. - The company aims to achieve 30% female representation in senior leadership roles by 2020, with current representation at 28.2%[107]. - The group has simplified its governance structure by reducing the number of board committees from seven to five, enhancing clarity of responsibilities[17]. Risk Management and Compliance - The expected credit loss as a percentage of customer loans was 0.18% in 2018, slightly down from 0.19% in 2017[39]. - The company is actively monitoring credit and transaction usage portfolios, conducting stress tests to identify industries and clients that may be pressured due to tariffs, trade restrictions, and economic slowdowns in the Eurozone and China[135]. - HSBC's operational risk management framework has been strengthened, focusing on non-financial risk management and monitoring[110]. - The company is gradually incorporating climate-related risks into its risk management framework, with a focus on sustainable financing[127]. Market Position and Growth Strategy - HSBC has a strong international network and connections to high-growth markets, contributing to long-term value for stakeholders[11]. - The group plans to leverage its international network to continue attracting clients and increasing market share in established markets[24]. - The company is actively pursuing mergers and acquisitions as part of its growth strategy, with further details expected in future reports[199]. - The company is focusing on new product development and market expansion strategies, although specific details were not disclosed in the provided content[199].