China ** Daily reporter Han Zhang Last night, HSBC Holdings, Hang Seng Bank, and Bank of East Asia, three foreign-funded institutions, successively disclosed their financial results in 2023. Among them, HSBC Holdings will make a big profit of 24.6 billion US dollars (about 1920.) in 2023HK$7 billion), with HSBC's own business profits in Chinese mainland alone contributing more than US$1 billion (about 78.8 billionHK$2.4 billion). Hang Seng Bank's net interest income increased by 26% to 322 in FY2023HK$9.5 billion. In addition, the Bank of East Asia, which also has a Hong Kong-funded background, also released its 2023 financial data, with a net profit of 41 for the whole year of 2023HK$200 million. HSBC Holdings made a whopping $24.6 billion last yearChinese mainland contributed more than US$1 billion in profitsOn the evening of February 21, HSBC Holdings*** released its 2023 annual results. According to the report, HSBC Holdings' pre-tax profit increased by US$13.3 billion to US$30.3 billion in 2023, and after-tax profit increased by US$8.3 billion to US$24.6 billion, a record high, and revenue increased by US$15.4 billion to US$66.1 billion, an increase of 30%. It is reported that the board of directors of HSBC Holdings has approved the payment of the fourth dividend of 0$31, with a total dividend of 0. per share in 2023$61, which is the highest level since 2008. 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. In terms of financial data, all of the above markets achieved significant baseline profit growth in 2023, with Chinese mainland (its own business), India and Singapore each contributing more than US$1 billion in profit to the Group. Regarding the development prospects of the Chinese market, HSBC Holdings also said in this financial report that it has confidence in the resilience of China's economy and medium- and long-term growth opportunities. In terms of global business performance, in the Commercial Banking business, all major legal entities recorded revenue growth, driving a 76% increase in profit before tax to 132US$8 billion, accounting for 438%。Wealth Management & Personal Banking reported profit before tax at 115US$4.4 billion, an increase of US$6.1 billion from 2022, accounting for 38% of the Group's overall profit before tax. Revenue from this business increased by $6.4 billion, or 31%. Among them, wealth management business revenue increased by 8% to US$7.5 billion, and private banking and asset management business recorded good growth.
Regarding its 2024 performance target, HSBC Holdings noted that the company continues to target an average return on tangible equity of around 15% in 2024. As it stands, net interest income from banking operations is expected to reach at least $41 billion in 2024. At the same time, the company maintained its common equity tier 1 capital ratio at 14% to 145% medium-term target range and maintaining the target payout ratio at 50% for 2024, with further share buybacks of up to $2 billion announced. In the financial report, HSBC Group Chairman Du Jiaqi also revealed that HSBC's plan to ** Canadian banking business was finally approved by Canada at the end of last year. Subject to the closing of the transaction, which is expected in the first quarter of 2024, the Board will consider a payment of 0. per share in the first half of 2024A special dividend of $21 will be given as a priority for proceeds. Benefit from cross-border businessHang Seng Bank's net interest income increased by 26% last yearHang Seng Bank, a member of the HSBC Group, also recorded strong growth in 2023. According to the financial report, Hang Seng Bank's net interest income in 2023 increased by 26% to 322HK$9.5 billion, with a net interest margin from 175% to 230%。In addition, the bank's net operating income before changes in expected credit losses and other credit impairment provisions increased by 19% to 408HK$2.2 billion, an increase of 64HK$2.3 billion. 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's profit attributable to shareholders increased significantly by 58% from the same period last year to 178HK$4.8 billion; Earnings per share rose 62% to 8HK$97. In comparison, the profit attributable to shareholders of the bank in 2022 was 112HK$8.6 billion; Earnings per share were 5HK$53. Unlike HSBC, Hang Seng Bank's performance growth relies on cross-border business deployment. Cross-border business is not only a key strategy of the bank, but also a pillar of performance growth. Hang Seng Bank explained in its financial report that the Group's financial performance benefited from the post-pandemic economic recovery and the resumption of customs clearance between the Mainland and Hong Kong. However, business growth was limited by concerns about economic volatility and the expectation that persistently high interest rates will continue to dampen investment appetite and loan demand. However, the Group seized the opportunity to increase its net interest income by actively managing its loan and deposit portfolio. In the financial report, 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. In addition, Ms Sze revealed that due to the company's abundant capital ratio, various options for returning shareholders with surplus capital will be considered. BEA made a net profit of 41 percent last yearHK$200 million. Yesterday, the Bank of East Asia, which also has a Hong Kong-funded background, also released its 2023 financial data, with a net profit of 41 for the full year of 2023HK$200 million, down 553% vs. 55HK$300 million; Earnings per share were 1HK$32. It is proposed to pay a second interim dividend of 0.0 per share for 2023HK$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%。In Hong Kong, BEA said profit before tax rose by 99% to 34HK$6.3 billion, but service fee income continued to be under pressure due to sluggish market sentiment and declining investment activity from customers. However, as global interest rates have peaked, the market is looking forward to starting an interest rate cut cycle, and many customers are willing to invest again. Looking ahead to the level of interest margins this year, BEA expects the US to start cutting interest rates in the second half of the year, which will lead to a narrowing of interest margins, although the impact on net interest income for the full year will be modest. In terms of loans, BEA said that Hong Kong's asset quality remained healthy, with most SME-related loans guaranteed by **100%; More than 80% of commercial loans are asset-backed loans, and even if the Hong Kong property market continues to decline, the risks are still manageable. 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. Edit: Captain's Review: Muyu.