HSBC Holdings plc Annual Results 2013

  • Reported profit before tax (‘PBT’) up 9% in 2013 at US$22,565m compared with US$20,649m in 2012.
  • Underlying PBT was up 41% in 2013 at US$21,586m, compared with US$15,286m in 2012.
  • Reported PBT was US$3,964m in the fourth quarter of 2013, compared with US$4,431m in the same period in 2012.
  • Earnings per share and dividends per share in respect of the year were US$0.84 and US$0.49 respectively, compared with US$0.74 and US$0.45 for 2012.
  • Return on equity 0.8% higher at 9.2%, compared with 8.4% in 2012.
  • Stable revenue – 2013 underlying revenue of US$63,295m compared with US$61,597m in 2012, underpinned by a resilient performance in Global Banking & Markets and growth in Commercial Banking.
  • Lower 2013 underlying operating expenses – 2013 operating expenses were US$38,203m, down 6% from US$40,754m in 2012. Excluding notable items, operating expenses increased in part reflecting inflationary pressures and a higher UK bank levy.
  • Underlying PBT was higher in three out of our four global businesses and all of our regions with the exception of Latin America where underlying profit before tax fell.
  • Maintained momentum in sustainable savings – during 2013 we achieved US$1.5bn of additional sustainable cost savings across all regions, taking the annualised total to US$4.9bn since the start of 2011. This exceeds our target for the end of 2013.
  • Further progress on capital generation – our core tier 1 capital was US$149bn, equating to a ratio of 13.6% and our estimated CRD IV end point basis common equity tier 1 ratio was 10.9% as at 2013.

Stuart Gulliver, Group Chief Executive, said:

“Our performance in 2013 reflects the strategic measures we have taken over the past three years. Today the Group is leaner and simpler than in 2011 with strong potential for growth. In 2013 we grew underlying profits by US$6.3bn, generated US$10.1bn in core tier 1 capital, achieved an additional US$1.5bn of sustainable cost-savings and declared US$9.2bn in dividends in respect of the year. Our strong capital generation continues to support our progressive dividend policy and reinforces HSBC’s status as one of the best capitalised banks in the world.”

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