**Times reporter Li Yingchao.
Against the backdrop of the gradual recovery of the global economy and the continued significant volatility of the financial market, what is the performance of foreign banks in 2023?
On February 21, HSBC Holdings, Hang Seng Bank, and Bank of East Asia, three foreign-funded institutions, successively disclosed their 2023 financial reports. Judging from the financial report data, steady development is its main tone. While summarizing the performance of the past year, the institutions also expressed their development expectations for 2024 and the direction of their next efforts.
HSBC: Chinese mainland made a significant profit contribution.
In its 2023 financial results released on 21 February, HSBC Holdings delivered a record earnings performance. During the reporting period, the group's profit before tax increased by US$13.3 billion to US$30.3 billion, and profit after tax increased by US$8.3 billion to US$24.6 billion, and the group's revenue increased significantly in fiscal 2023.
During the same period, the Group's revenue increased by US$15.4 billion, or 30%, to US$66.1 billion, including an increase in net interest income of US$5.4 billion. Net interest income increased across all of the group's global businesses amid rising interest rates, while non-interest income increased by US$10 billion. HSBC Holdings' net interest margin for 2023 is 166%, up 24 basis points; The common equity tier 1 capital ratio is 148%, an increase of 06 percentage points.
In 2023, the HSBC Group continued to diversify its profits across multiple markets, including fast-growing business opportunities in Chinese mainland, India, Singapore, the United Arab Emirates, Saudi Arabia and Mexico.
From the perspective of financial data, the above markets have achieved significant benchmark profit growth in 2023, and Chinese mainland (its own business), India and Singapore have each contributed more than US$1 billion in profit to the Group, once again proving the effectiveness of their related business strategies.
HSBC Group Chief Executive Officer Christine Eddie Chi said the Group is confident in the resilience of China's economy and medium- to long-term growth opportunities.
Hang Seng: Key financial data came in higher than expected.
Hang Seng Bank also released its 2023 results report on February 21. According to the financial report, the group's annual net interest income in 2023 will be 322HK$9.5 billion, compared to the previous market estimate of HK$320HK$200 million; The common equity Tier 1 capital adequacy ratio was 181%, compared to the previous estimate of 139%；Net profit was 178HK$500 million, compared to the previous market estimate of 172HK$200 million; These three financial data of Hang Seng Bank were higher than market expectations.
Specifically, the bank's net interest income for the full year of 2023 increased by 26% from the previous year to 322HK$9.5 billion; Net interest margin increased 55 basis points from the prior year year to 230%。
During the reporting period, Hang Seng Bank's net operating income before changes in expected credit losses and other credit impairment provisions increased by 19% to 408HK$2.2 billion, up from HK$343 in 2022An increase of HK$9.9 billion.
The financial data also showed that the profit attributable to shareholders of Hang Seng Bank increased by 58% from the previous year to 178HK$4.8 billion; Earnings per share rose 62% to 8.5% per shareHK$97, compared to HK$5 per share in 2022HK$53.
East Asia: Core business performance improved.
On February 21, the Bank of East Asia, which also has a Hong Kong-funded background, also released its 2023 financial data. According to the data, the bank's net profit for the whole year of 2023 will be 41HK$200 million, compared to the previous market estimate of 55HK$300 million.
BEA improved its revenue** and cross-border business development, recording an operating profit before provision of 113HK$1.4 billion, an increase of 29.9 from 20226%。
The financial report showed that the Bank of East Asia's core business performance improved due to the end of the low-interest rate environment, with net interest income increasing by 33HK$6.6 billion to HK$168HK$7.4 billion. In an environment of rising interest rates, the Group's net interest margin increased by 49 basis points year-on-year from 165% to 214%。
However, due to sluggish market sentiment, the Group's net fee and commission income decreased by 41% to 26HK$400 million. Higher commission income from lending operations and third-party policy sales offset income from the Group's client investment activities**.
In addition, the cost-to-income ratio improved by 5.5 in 2023 as the bank continued to invest heavily in talent, sales and digital capabilities, as well as operational efficiency improvements due to transformation measures9 percentage points to 455%。
When shareholder feedback is in progress.
Foreign banks have paid dividends.
While the business has achieved strong performance, many foreign banks have also actively returned to shareholders.
HSBC Holdings said its board of directors has approved a fourth dividend of 0. per share$31, 2023 aggregate dividend per share of 061 USD.
On the day of the earnings release, HSBC also announced plans to carry out share buybacks of up to US$2 billion, which are expected to be completed before the first quarter of 2024 results are announced.
We recorded a record earnings performance in 2023, which allowed us to reward shareholders with our highest full-year dividend since 2008, and repurchased a total of US$7 billion of shares in three times last year, with a further US$2 billion in share repurchases to come. These reflect the results of our efforts over the past four years and the Group's balance sheet strength in an environment of rising interest rates. Qi Yaonian said.
Against the volatile economic environment over the past year, Hang Seng Bank has also made steady progress in implementing its strategies of growth, innovation and sustainability. During the reporting period, the Bank implemented prudent risk management and actively improved cost efficiency, resulting in a significant increase of 58% to 178 in profit attributable to shareholders compared to the same period last yearHK$4.8 billion; Earnings per share rose 62% to 8HK$97.
Hang Seng Bank's Executive Director and Chief Executive Officer, Winnie Sze, said that in the past year, Hang Seng has refocused its business focus and diversified its revenue**, and will continue to support the development of the Guangdong-Hong Kong-Macao Greater Bay Area in the future. At the same time, the bank's board of directors declared a fourth interim dividend of 3HK$20. So far, the bank's dividend per share for the full year of 2023 is 6HK$50, up 59% year-on-year compared to 2022.
Due to our abundant capital ratio, we will consider various options for returning shareholders with surplus capital. Shi Yingyin revealed.
New year, new goals.
Actively seize the opportunities in the Greater Bay Area.
On the day of the release of the financial report, the banks also looked forward to the opportunities in 2024 and clarified the direction of their next efforts.
HSBC Holdings expects the group to continue to target an average return on tangible equity of around 15% by 2024. Based on HSBC's current**, net interest income from banking operations is expected to be at least US$41 billion in 2024.
While we remain cautious on our loan growth outlook for the first half of 2024, we still expect customer lending to grow by a mid-single-digit percentage year-on-year in the medium to long term. "The HSBC Group as a whole remains committed to cost discipline, setting costs in 2024 to increase by about 5% compared to 2023.
On the other hand, HSBC Holdings intends to continue to maintain its common equity tier 1 capital ratio at 14%145% medium-term target range; The target payout ratio for 2024 has been maintained at 50%, and further share buybacks of up to $2 billion have been announced.
Hang Seng Bank, which will turn 91 in 2024, also said that it will continue to promote innovation to promote business growth and actively seize the opportunities brought by the Guangdong-Hong Kong-Macao Greater Bay Area.
BEA executives also said that as Hong Kong and the mainland become more connected, the bank will continue to strive to provide a comprehensive banking experience in the Greater Bay Area, strengthen business relationships with customers in emerging industries in the mainland and Hong Kong, and seize the opportunities.