HSBC Holdings plc 2014 results highlights
- Reported profit before tax (‘PBT’) down 17% in 2014 at US$18,680m, compared with US$22,565m in 2013. This primarily reflected lower business disposal and reclassification gains and the negative effect, on both revenue and costs, of significant items including fines, settlements, UK customer redress and associated provisions.
- Adjusted PBT was broadly unchanged in 2014 at US$22,829m and excludes the year-on-year effects of foreign currency translation and significant items, compared with US$22,981m in 2013.
- Earnings per share and dividends per share in respect of the year were US$0.69 and US$0.50 respectively, compared with US$0.84 and US$0.49 for 2013.
- Return on equity lower at 7.3%, compared with 9.2% in 2013.
- Stable revenue - 2014 adjusted revenue of US$62,002m compared with US$61,854m in 2013, underpinned by growth in Commercial Banking, notably in our home markets of Hong Kong and the UK.
- Loan impairment charges were lower reflecting the current economic environment and the changes we have made to our portfolio since 2011.
- Higher 2014 operating expenses - adjusted operating expenses in 2014 were US$37,854m, up 6.1% from US$35,682m in 2013, due to increased regulatory and compliance costs, inflationary pressures and investment in strategic initiatives to support growth.
- Capital - the common equity tier 1 capital ratio (CRD IV transitional basis) was 10.9% at 31 December 2014, up from 10.8% at 31 December 2013.
Stuart Gulliver, Group Chief Executive said:
“2014 was a challenging year in which we continued to work hard to improve business performance while managing the impact of a higher operating cost base. Profits disappointed, although a tough fourth quarter masked some of the progress made over the preceding three quarters. Many of the challenging aspects of the fourth quarter results were common to the industry as a whole. In spite of this, there were a number of encouraging signs, particularly in Commercial Banking, Payments & Cash Management and renminbi products and services. We were also able to continue to grow the dividend.”
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