On Tuesday, HSBC reported earnings that exceeded analyst expectations for the fourth quarter of 2022. The bank reported a profit before tax of $5.2 billion for the three months ended in December, a 108% increase from $2.5 billion a year earlier and higher than the $4.97 billion expected in estimates. HSBC said its fourth-quarter results reflect strong reported revenue growth and lower reported operating expenses.
For the full year, reported revenue was $51.73 billion, up from $49.55 billion in 2021. The bank’s reported profit before tax for 2022 fell to $17.53 billion from $18.91 billion a year ago. It said the 2022 reported pre-tax profit included a $2.4 billion impairment due to the planned sale of its retail banking operations in France. HSBC, Europe’s largest bank by assets, said higher global interest rates support the firm’s confidence in achieving its target of at least 12% return on average tangible equity in 2023. “We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world,” Noel Quinn, group chief executive said in the release. “We are on track to deliver higher returns in 2023 and have built a platform for further value creation,” he said. Globally, central banks have been raising interest rates to keep inflation in check, resulting in strong net interest income for banks. In 2023, HSBC expects to earn at least $36 billion in net interest income.
