HSBC HOLDINGS(HSBC)2025-02-20 14:54Financial Performance - Profit before tax for 2024 increased by 32.3 billion, with notable items contributing a net favorable impact of 65.9 billion, with constant currency revenue excluding notable items rising by 67.4 billion[6]. - In 2024, the profit before tax was 2.0 billion compared to 2023[43]. - Profit before tax for the year ended December 31, 2024, was 30,348 million in 2023[85]. - Profit before tax for 2024 was reported at 30.348 billion in 2023, indicating a growth in profitability[164]. - Constant currency profit before tax for 2024 reached 30,348 million in 2023, representing a growth of 6.5%[96]. - Profit attributable to ordinary shareholders of the parent company was 22,432 million, reflecting a growth of 2.2%[85]. - Basic earnings per share increased to 1.15 in 2023, reflecting an increase of 8.7%[85]. - The return on average tangible equity (RoTE) was 14.6%, or 16.0% excluding notable items[63]. Revenue and Income - Revenue for 2024 was reported at 66.058 billion in 2023[34]. - Net operating income before change in expected credit losses for 2024 was 66,058 million in 2023, a decrease of 0.3%[97]. - Total interest received rose to 98,910 million in 2023[122]. - Strategic investments in Wealth generated an 18% revenue growth in 2024, with a 21% increase in fee and other income[48]. Expenses and Costs - Net interest income decreased by 43.7 billion, reflecting higher funding costs and business disposals[7]. - Operating expenses grew by 33.0 billion, primarily due to higher technology investments and inflation[10]. - Total operating expenses for 2024 were 32,070 million in 2023, an increase of 3.0%[97]. - The constant currency cost efficiency ratio improved to 50.2% in 2024 from 48.5% in 2023[96]. - The company plans to achieve approximately 1.5 billion expected by the end of 2026[22]. Customer Growth - Customer accounts rose by 75 billion on a constant currency basis, indicating growth across all global businesses[12]. - Customer accounts increased to 1,611,647 million in 2023, marking an increase of 2.7%[85]. - Customer accounts rose to 1.579 trillion in 2023, showing strong customer growth[162]. Capital and Dividends - The common equity tier 1 (CET1) capital ratio increased to 14.9%, up by 0.1 percentage points, supported by capital generation and reduced risk-weighted assets[13]. - The Board approved a total dividend of 0.21 per share[14]. - Total dividends paid to shareholders for 2024 amounted to 10.492 billion in 2023, reflecting a per share increase from 0.82[150]. - Dividends on ordinary shares increased significantly to 10,492 million in 2023, representing a growth of 46.5%[85]. Assets and Liabilities - Total assets decreased slightly to 3,038,677 million in 2023, a decline of 0.7%[85]. - Total external assets for 2024 were 2,972,547 million in 2023, reflecting a growth of 1.5%[93]. - Total liabilities decreased to 2,846,067 million in 2023, a decline of about 0.7%[106]. Taxation - The effective tax rate for 2024 was 22.6%, up from 19.1% in 2023, primarily due to a non-deductible loss from the sale of HSBC Argentina[138]. - The Group recorded a Pillar Two global minimum tax charge of 1,536 million, while the non-taxable gain from the sale of HSBC Canada reduced it by 543 million from Madoff Securities and 382 million, with some claims dismissed but others ongoing[179]. - HSBC faces litigation from Alpha Prime Fund Limited for $1.16 billion, with actions pending in the Luxembourg District Court[181]. - HSBC is involved in a class action lawsuit related to the manipulation of silver prices, which seeks unspecified damages and is currently pending appeal[193]. - The company is also defending against allegations of anti-competitive behavior in the foreign exchange market, with claims seeking approximately £3 billion in damages[191].