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HSBC presented the goal of savings of $ 300 million this year and reduced $ 1.5 billion from its costs by the end of next year, as it reported to the increase in profit in the fourth quarter.
On Wednesday, the Bank announced that in the last three months of last year it has made a profit before taxation of $ 2.3 billion, in a full -year earning report that illuminated the influence of executive director Georges Elhedery Reconciliation of overhaul Ever since he took over the top job in September.
Changes include Redring HSBC businesses in eastern and western units, closing the key parts of your business in investment banking and connecting two of the three main units. It sets an expensive layer of older bankers in the process.
HSBC He said he expected the overhaul to start $ 1.8 billion in advanced costs, including severance pay, 2025 and 2026. The goal would be diverted to about $ 1.5 billion from “non -party activities” in areas where he had a competitive advantage, he added.
“I established a smaller, fundamental team of extremely talented leaders guided by the mindset of thinking oriented and focused firmly on the dynamic management of our costs and capital. . . We look at the future with confidence and clarity of purpose, “Elhedery said.
Profit before the taxation of the bank for the year to December increased to $ 32.3 billion, beating the estimates of analysts in the amount of $ 31.7 billion.
HSBC presented a fourth temporary 36 cento dividend per share, taking a total of 2024. At 87 cents, and said he had planned to buy a $ 2 billion share, which is the latest series in recent years.
Bank costs increased by 3 percent to $ 33 billion, partly due to inflation and investment in technology, the bank said.
Its net interest margin, a key measure to borrow profitability, fell by 10 base points to 1.56 percent.
Margin – the difference between interest that the bank gets from the loans and the rate it pays to savings – it has increased along with interest rates in recent years, but it began to fall last year, which is a sign that increasing growing feet reduced.
This puts the bank under pressure to reduce costs and increase income in areas that depend less on higher rates.
