With the gradual recovery of the global economy and a series of fluctuations in the financial market, the performance of major banking groups in 2023 has attracted widespread attention.
On February 21, three foreign-funded institutions, HSBC Holdings, Hang Seng Bank and Bank of East Asia, successively disclosed their financial results for 2023. Judging from the financial report data, two of the banking institutions have achieved steady development performance throughout last year.
While summarizing the performance of the past year, various institutions also expressed their outlook for 2024 and clarified the direction of their next efforts.
HSBC: Chinese mainland contributed more than US$1 billion in profits.
In its latest 2023 financial results, HSBC Holdings posted a record earnings performance. On February 21, HSBC Holdings released its 2023 annual results, showing that 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, reflecting the growth of the group's revenue in fiscal year 2023.
In 2023, revenue increased by US$15.4 billion to US$66.1 billion, an increase of 30%, including an increase in net interest income of US$5.4 billion, with net interest income increasing across all of the Group's global businesses amid rising interest rates. Noninterest income increased by $10 billion.
In addition, HSBC Holdings' net interest margin for 2023 is 166%, up 24 basis points, reflecting rising interest rates; The common equity tier 1 capital ratio is 148%, an increase of 06 percentage points.
In 2023, the HSBC Group continued to drive profitable geographic diversification across multiple markets, including fast-growing business opportunities in markets such as 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 to the Group's profit, proving to the market once again that the relevant business strategies are effective.
In his speech, HSBC Group Chief Executive Officer Christine Eddie Chi said the Group has confidence in the resilience of China's economy and the medium- to long-term growth opportunities.
Hang Seng: The main financial data was higher than market expectations.
Hang Seng Bank also released its 2023 results on February 21. According to the financial report, in 2023, the group's annual net interest income will be 322HK$9.5 billion, compared to the previous market estimate of about 320HK$200 million; Common Equity Tier 1 capital adequacy ratio of 181, the market previously estimated 139％；Net profit 178HK$500 million, compared to the previous market estimate of 172HK$200 million; All three financial figures 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, compared to HK$343 in 2022The level of HK$9.9 billion has increased.
Hang Seng Bank's 2023 financial data shows that profit attributable to shareholders increased by 58% from the previous year to 178HK$4.8 billion; Earnings per share rose 62% to 8.5% per shareHK$97 (This figure is 5. per share in 2022.)HK$53). Return on average common equity was 113%, compared to 7 in 2022The level of 2% grew by 41 percentage point.
East Asia: Core business performance improved.
On the same day, the Bank of East Asia, which also has a Hong Kong-funded background, also released its 2023 financial data, which showed that the bank's net profit for the whole year of 2023 was 41HK$200 million, compared to the previous market estimate of 55HK$300 million. The second interim dividend per share is 0HK$18.
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%。
According to the financial report, BEA's core business performance improved due to the end of the low-interest rate environment, with net interest income increasing by 33 percent last yearHK$6.6 billion to HK$168HK$7.4 billion. Against the backdrop 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, 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 client investment activities**.
In addition, as the bank continued to invest heavily in talent, sales and digital capabilities, the transformation measures led to operational efficiencies. The cost-to-income ratio improved by 5 in 20239 percentage points to 455%。
When shareholder feedback is in progress.
In addition to strong business performance, positive returns to shareholders are also a key focus for many foreign banking groups.
HSBC Holdings said its board of directors has approved a fourth dividend of 0. per share$31, with a total dividend of 0. per share in 202361 USD.
At the time of the release of the earnings report on the same day, HSBC also announced that it planned to carry out share buybacks of up to US$2 billion. The share buyback is expected to be completed prior to the announcement of first-quarter 2024 results.
"We recorded a record earnings performance in 2023, which allowed us to reward shareholders with our highest full-year dividend since 2008, and a total of $7 billion in share repurchases last year, with a further $2 billion in share buybacks to follow. 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. HSBC Group Chief Executive Officer Philip Philip said.
In addition, in the volatile economic environment of the past year, Hang Seng Bank has made steady progress in implementing its strategy of driving growth, continuous innovation and future continuity. During the reporting period, the Bank implemented prudent risk management and actively improved cost efficiency, resulting in a significant increase of 58% to 178HK$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, the bank has refocused on its business focus, 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. For the full year 2023, the dividend per share totalled 6HK$50, an increase of 59% year-on-year compared with 2022. "Due to our ample capital ratio, we will consider various options to return shareholders with surplus capital. Shi Yingyin revealed.
New year, new goals.
On the day of the release of the financial report, banks looked forward to the opportunities for the whole year of 2024 and expressed their positions to clarify the direction of their next efforts.
HSBC Holdings' 2024 performance targets show the group continues 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. HSBC Holdings' financial report shows. The Group as a whole remains committed to cost discipline. As a target, the group has set a cost increase of around 5% in 2024 compared to 2023.
On the other hand, HSBC Holdings intends to continue to maintain its common equity tier 1 capital ratio at 14% to 14%.5% 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 vigorous development, and actively seize the opportunities brought by the Guangdong-Hong Kong-Macao Greater Bay Area.
BEA executives also said that 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 Chinese mainland and Hong Kong, and seize opportunities.
Editor-in-charge: Wang Lulu.
Proofreading: Liao Shengchao.
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