HSBC Reports 6.6% Annual Profit Increase to $32.3 Billion

HSBC reported a 6.6% increase in annual profit for 2024, reaching $32.3 billion, surpassing market expectations despite falling interest rates impacting income. The bank's revenue declined slightly to $65.85 billion, and it has undergone significant restructuring under new CEO Georges Elhedery, which included the dismissal of around 40 investment bankers in Hong Kong. Analysts predict HSBC's profit growth for 2024 will be around 5%, while Standard Chartered is expected to see a more robust 22% increase in its profit to $4.23 billion. Both banks are focusing on wealth management to mitigate the effects of narrowing interest-rate margins, and substantial share buy-back programs are anticipated, with HSBC planning to spend $2 billion. Overall, the financial results reflect strategic shifts aimed at bolstering returns and enhancing shareholder value amidst challenging market conditions. The earnings announcements are set to provide further insights into each bank's performance and future strategies.