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HSBC reported pre-tax earnings of $5.2 billion for the last three months of last year, beating analysts’ expectations.

The London-listed bank’s profits jumped more than 90 percent from the same period a year earlier, as higher interest rates boosted revenues.

Still, the bank’s full-year pretax profit fell $1.4 billion, due in part to an impairment charge on the planned sale of its retail banking business in France.

Chief executive Noel Quinn said, “2022 was another good year for HSBC,” adding, “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.”

The bank has approved a total dividend of 32 cents per share for 2022 and said the special dividend would be a “priority use of proceeds” from the sale of its Canadian operations to Royal Bank of Canada for $10 billion.

Net interest income rose to $32.6 billion for the full year, up from $26 billion in 2021, a sign of how far rising interest rates have helped boost banks’ profits. HSBC, one of the world’s largest depository institutions, is particularly sensitive to changes in rates.

The bank reported $3.6 billion in expected credit losses and other impairment charges for the year, which it said reflected “increased economic uncertainty.” [from] inflation, rising interest rates and supply chain risks,” as well as China’s real estate crisis.






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