HSBC Q4 Profit Climbs; Sees Good Business Momentum In FY22, Weaker Wealth Performance In Asia

Asia-focused lender HSBC Holdings Plc (HSBC,HSBA.L) reported Tuesday that its fourth-quarter profit before tax climbed to $2.66 billion from last year's $1.39 billion. Earnings per share were $0.09, up from $0.03 a year ago.

The results reflected lower ECL charges, lower operating expenses and revenue growth.

Adjusted profit before tax was $3.97 billion, compared to $2.22 billion a year ago.

Revenue in the quarter grew 2 percent from last year to $12.0 billion, mainly in Commercial Banking from growth in Credit and Lending and GTRF. Adjusted revenue went up 2 percent to $12.1 billion.

Net interest income grew slightly to $6.78 billion from last year's $6.62 billion.

Looking ahead, the company said it carries good business momentum into 2022 in most areas and expects mid-single-digit lending growth over the year. However, the bank expects a weaker Wealth performance in Asia in the first quarter of 2022.

The company expects mid-single-digit RWA growth in 2022 through a combination of business growth, acquisitions and regulatory changes, partly offset by additional RWA savings. This growth, together with capital returns are expected to normalise CET1 position to be within the 14 percent to 14.5 percent target operating range during 2022.

The company said, "Our net interest income outlook is now significantly more positive. If policy rates were to follow the current implied market consensus, we would expect to deliver a RoTE of at least 10 percent for 2023, one year ahead of our previous expectations."

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