From Financial Modeling Prep: 2025-02-19 05:49:05

HSBC Holdings PLC (LON:HSBA) reported a 6.6% increase in annual profit, driven by gains in wealth management and trading. Despite a decline in net interest income, the bank announced a $2 billion share buyback, emphasizing shareholder returns.

Key financial highlights include a $32.3 billion profit before tax in 2024, a $3.1 billion drop in net interest income, and a forecast of $42 billion in NII for 2025. Dividends included a $0.36 per share fourth interim dividend and a total 2024 payout of $0.87 per share.

CEO Georges Elhedery is focused on cutting $1.5 billion in annual expenses by 2026 through cost restructuring. HSBC’s share buybacks in 2024 totaled $9 billion, reducing the share count by 11% since early 2023.

Despite a 0.3% dip in Hong Kong-listed shares post-earnings, investors remain cautious about HSBC’s future due to margin pressure and ongoing cost reductions.

HSBC’s strong earnings growth, cost management efforts, and capital returns showcase financial stability. However, concerns linger over declining net interest income. The bank’s performance in 2025 will heavily rely on stabilizing margins and executing strategic cost cuts.



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