The British financial services company considers paying its shareholders a special dividend of $0.21 per share as proceeds generated by the sale, subject to completing the sale of its Canadian banking business
HSBC reports rise in Q4 2022 net profit. (Credit: Joshua Lawrence on Unsplash)
HSBC has reported a net profit of $4.89bn for the three months ended 31 December 2022, a 142% rise compared to $2.02bn for the corresponding period of the previous year.
The British lender reported a profit before tax of $5.2bn for the fourth quarter (Q4) 2022, a 95% increase compared to $2.66bn for the same period in 2021.
The bank reported a net interest income of $9.57bn for Q4 2022, a 41% rise compared to $6.78bn for the corresponding quarter of the prior year.
The company reported operating expenses of $1.14bn for Q4 2022, compared to $1.20bn for the same period in 2021.
HSBC considers payment of a special dividend of $0.21 per share, as proceeds generated by the sale, subject to the closing of the sale of its Canadian banking business.
HSBC Group chief executive Noel Quinn said: “2022 was another good year for HSBC. We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world.
“This contributed to a strong overall financial performance. We are on track to deliver higher returns in 2023 and have built a platform for further value creation.
“With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed.”
HSBC reported a net profit of $16.6bn, or $0.74 per diluted share, for the full year ended 31 December 2022, a 17% rise compared to $14.60bn, or $0.62 per diluted share, for the previous year.
The bank reported total revenue of $51.72bn for the full-year 2022, a 4% increase compared to $49.55bn for the full-year 2021.
The company reported total operating expenses of $33.33bn for the full-year 2022, a 3.7% decrease compared to $34.62bn for the full-year 2021.
The British lender reported profit before tax of $17.52bn for the full-year 2022, a 7% decrease compared to $18.90bn for the full-year 2021.
HSBC Group chairman Mark E Tucker said: “At the start of 2022, the on-going impact of Covid-19 was the most dominant factor within the external environment.
“While further outbreaks in Hong Kong and mainland China significantly impacted economic growth, the Russia-Ukraine war and rising inflation and interest rates had an even greater impact on the global economy in 2022.
“They are also likely to continue to have a greater economic impact than the pandemic in 2023, as we are already seeing with a cost-of-living crisis affecting many of our customers and colleagues.”