HSBC's 2023 Full-Year Pretax Profit Misses Analysts' Estimates, London-Listed Shares Sink 7%

HSBC's 2023 full-year pretax profit fell short of analysts' expectations, attributed to impairment costs linked to its Chinese bank stake, leading to a 7% drop in its London-listed shares. The bank reported a record $30.3 billion pre-tax profit, missing the $34.06 billion median estimate. CEO Noel Quinn announced a share buyback and a potential special dividend. Despite a 78% increase in pre-tax profit, the bank's fourth-quarter pretax profit plummeted by 80% due to a $3 billion "valuation adjustment" on its Chinese bank stake. HSBC aims for a mid-teens return on tangible equity in 2024. The bank plans to focus on expanding non-interest income revenue sources via its wealth and transaction banking business and anticipates at least $41 billion in banking non-interest income for the 2024 financial year.

Factors Influencing HSBC's 2023 Performance

The impairment costs linked to its Chinese bank stake and the subsequent 7% drop in London-listed shares significantly impacted HSBC's 2023 full-year performance. Despite a record pre-tax profit, it fell short of analysts' expectations, leading to strategic decisions by the bank's leadership.