CNBC·2026-02-25 04:19Financial Performance - HSBC reported an annual pre-tax profit of $29.91 billion, exceeding estimates, despite a 7.4% decline in annual profit. Revenue increased by 4% year on year, reaching $68.27 billion compared to the estimated $67.36 billion [1][6]. Privatization of Hang Seng Bank - HSBC completed the privatization of Hang Seng Bank on January 26, with Hang Seng's shares subsequently delisted from the Hong Kong Stock Exchange. The bank anticipates that this deal will enhance earnings and is a more effective use of capital than share buybacks [2]. Strategic Outlook - HSBC's Group Chief Executive Georges Elhedery described the take-private offer as an opportunity to grow both Hang Seng and HSBC, emphasizing the preservation of Hang Seng's brand while investing in its capabilities [3]. Compensation and Performance Management - HSBC is moving towards a more performance-driven compensation model, similar to its Wall Street peers, with reports indicating minimal or no bonuses for some bankers. This shift aims to push out underperformers in investment banking and wealth management [4][5].