HSBC profit soars thanks to high interest rateson February 21, 2024 at 5:53 am

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Europe’s biggest bank, HSBC, has reported a jump of almost 80% in its annual profit in 2023.

HSBC building at Canada Square at the heart of Canary Wharf financial district.Image source, Getty Images

Europe’s biggest bank, HSBC, has posted an almost 80% jump in its pre-tax profit which rose to $30.3bn (£24bn) in 2023, fuelled by high interest rates.

It comes after central banks around the world raised interest rates in last 18 months to help curb rising prices.

Last week, rival lender NatWest revealed its highest yearly profit since the financial crisis in 2007.

But a slowdown in China’s economy has meant that the bank’s profit was not as high as expected.

Its chief executive, Noel Quinn, said in a statement: “Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008.”

HSBC’s pre-tax profit for 2022 was $17.1bn and analysts were expecting it to jump to $34.1bn last year.

The bank makes most of its profits in Asia, especially China and Hong Kong.

China, the world’s second biggest economy is experiencing falling prices, known as deflation, which tends to discourage consumers from spending as they expect items to be cheaper in the future.

Investors have been closely watching HSBC’s exposure to China’s property sector, which has been engulfed in crisis since 2020.

Last month, a court in Hong Kong ordered the liquidation of debt-laden property giant Evergrande.

“China’s economy just can’t kick into gear,” Moody’s economist Harry Murphy Cruise had earlier told the BBC. “Investors are crying out for larger economic supports to be rolled out.”

Rival Asia-focused bank Standard Chartered is due to report its financial results later this week.

Related Topics

- Advertisement -

Discover

Sponsor

Latest

Why singer Jully Black changed one word in Canada’s national anthemon February 21, 2023 at 9:37 pm

Singer Jully Black has gotten a lot of reaction for her rendition of O Canada at an NBA game.Singer Jully Black has gotten a...

Bolsonaro breaks silence without publicly concedingon November 1, 2022 at 9:32 pm

He neither acknowledges defeat nor congratulates his rival but vows to comply with the constitution.This video can not be playedTo play this video you...

Coeliac patient died days after being fed Weetabix, inquest hearson June 17, 2022 at 10:01 am

An 80-year-old coeliac patient was given the cereal in hospital and died four days later.Image source, Getty ImagesA patient with coeliac disease died days...

‘Christmas kindness has made me a strong person’on December 24, 2021 at 12:56 am

The family overwhelmed by the public's reaction to the story of their financial struggles.All week, Dayjanta Samuels has been "wild and excited", says his...

World Cup 2022: Wales’ play-off final on free-to-air TVon May 27, 2022 at 1:12 pm

Four broadcasters will show next week's decisive tie in Cardiff, which may also involve Scotland.