After three years of transformation, our international business model is delivering more for our customers and better returns for our shareholders.
- Adjusted profit before tax was $24.0bn, excluding currency translation differences and significant items (FY21: $20.6bn)
- The first, three-year phase of our strategy execution is now complete; our international connectivity is now underpinned by good, broad-based profit generation around the world
- Adjusted revenue was $55.3bn (FY21: $47.0bn)
- Adjusted operating expenses increased by 1% in a high inflationary environment
- Expected credit losses and other credit impairment charges (ECL) of $3.6bn; $1.3bn associated with mainland China’s commercial real estate sector
- Our common equity tier 1 capital ratio is 14.2%, within our 14% to 14.5% target range
- We’re establishing a 50% payout ratio for 2023 and 2024, and intend to revert to paying quarterly dividends in 2023
- We will consider a special dividend of $0.21 per share, subject to the completion of the sale of HSBC Canada and other necessary approvals, expected to be paid in early 2024
Good performances from our businesses worldwide (duration 2:37)
Our ambition is to be the preferred international financial partner for our clients.
We’re the world’s number one bank for trade finance¹, one of the top three processors of SWIFT payments² and third for FX globally, excluding commodities¹.
We have engines of growth and profitability in markets around the world.
Adjusted profit before tax by region, FY22
After three years of transformation, we’ve created a strong platform for improved growth and returns, with new opportunities for value creation.
We plan to grow our core business, which is built on the international connectivity prized by our customers and the good, broad-based profitability we now have spanning every region.
The investment we’ve made in new sources of value creation, such as wealth, fee income, digitisation and sustainability, is designed to further grow and broaden our revenue.
We intend to maintain a tight grip on costs to enable spending in areas that create value for our customers, colleagues and investors.
Our improved profitability and sustainable dividend policy should give us increased distribution capacity, with a 50 per cent dividend pay-out ratio established for 2023 and 2024, an intended return to quarterly dividends from Q1 2023, and buybacks considered at our Q1 2023 results in May.
We’re firmly on track to deliver returns of at least 12 per cent in 2023, with a view to growing further in the years to come.
1 Coalition Greenwich Competitor Analytics. Based on HSBC’s internal business structure and internal revenue numbers. Global Trade Finance rank at 1H22 and based on the following peer group: BAC, BARC, BNPP, CITI, DB, JPM, SG, SCB, WF; Global Foreign Exchange rank at 3Q22 YTD and based on the following peer group: BAC, BARC, BNPP, CITI, CS, DB, GS, JPM, MS, SG, UBS
2 Data as of 31 December 2022
3 Client business differs from reported revenue as it relates to certain client specific income, and excludes certain products (including Principal Investments, GBM “other” and asset management), Group allocations, recoveries and other non-client related and portfolio level revenue. It also excludes Hang Seng. GBM client business includes an estimation of client-specific day one trade specific revenue from MSS products, which excludes ongoing mark-to-market revenue and portfolio level revenue such as hedging. Cross-border client business represents the income earned from a client’s entity domiciled in a different geography than where the client group’s global relationship is managed. ‘Booking location’ represents the geography of the client’s entity or transaction booking location where this is different from where the client group’s global relationship is managed