- HSBC’s reported profit before tax for the three months ended December was $5.2 billion.
- Analyst estimates compiled by HSBC had expected an 87% increase to $4.97 billion.
Hong Kong ferris wheel, and the Hong Kong and Shanghai Bank, HSBC building, Victoria harbour, Hong Kong, China.
Ucg | Universal Image Group | Getty Images
HSBC reported on Tuesday its fourth-quarter 2022 numbers that beat analysts’ expectations.
The bank’s reported profit before tax for the three months ended December was $5.2 billion, 108% higher than $2.5 billion a year ago. Analyst estimates prepared by the bank had expected an 87% increase to $4.97 billion.
The bank 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.
HSBC, Europe’s largest bank by assets, said higher global interest rates support the company’s confidence in meeting its target of at least a 12% return on average tangible equity by 2023.
“We have completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based earnings generation around the world,” said Group CEO Noel Quinn in the release.
“We are on track to achieve higher returns in 2023 and have built a platform for further value creation,” he said.
Banks worldwide have seen strong net interest income as central banks around the world raised interest rates to curb inflation. HSBC said it expects net interest income of at least $36 billion by 2023.
Hong Kong-listed shares of HSBC were about 1% lower before the release.
This is a breaking news story, check later for updates.