HSBC’s annual pre-tax profit more than doubled in 2021 as the London-headquartered lender benefitted from the global economic recovery following the pandemic.
In 2021, the bank’s profit before tax was $18.9bn. The figure represents a jump of $10.1bn from $8.7bn reported a year ago.
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Profit after tax also soared by $8.6bn to $14.7bn on a year-on-year basis.
The lender attributed the increase a net release of expected credit losses and other credit impairment charges (ECL). The company associates also contributed a higher share of profits last year.
HSBC UK Bank’s annual pre-tax profit also jumped by $4.5bn to $4.8bn. The bank’s Asian operations posted $12.2bn in profit before tax in the same period.
However, HSBC recorded a 2% drop in annual reported revenues to $49.6bn primarily due to the impact of lower global interest rates and a drop in Markets and Securities Services (MSS) revenues.
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By GlobalDataHSBC will also pay a second interim dividend of $0.18 per share and launch a further share buy-back of up to $1bn that will initiate after the existing up to $2bn buy-back completes.
Quarterly Performance
The bank posted a reported profit before tax of $2.7bn in the fourth quarter of 2021, up $1.3bn from a year ago period.
Reported revenue also increased by 2% to $12bn.
Quote
HSBC Group CEO Noel Quinn said: “We made good progress against our strategy in 2021, which contributed to a strong financial performance that was supported by the global economic recovery. All of our regions were profitable and we saw growth in the fourth quarter of 2021 in many of our business lines.
“We have good momentum coming into 2022 and are confident that we can continue to execute against our strategy. We also remain cognisant of the potential impact that further Covid-19-related uncertainty and continued inflation might have on us and our clients.”
