HSBC Reports Q4 Profit Growth Despite Revenue Decline

HSBC Holdings Plc saw a profit increase in Q4, totaling $2.3 billion, despite an 11% drop in revenues. This performance may influence investor sentiment around the stock.

Date: 19-02-2025

AI Rating: 6

Profit and Earnings Per Share: HSBC reported a profit before tax of $2.3 billion for the fourth quarter, an increase of $1.3 billion compared to the previous year. This is also reflected in the reported profit after tax of $0.6 billion, which grew by $0.4 billion year-over-year. The earnings per share rose to $1.24 from $1.14.

Revenue Decline: Despite the growth in profit, revenues fell by 11% to $11.6 billion this quarter, primarily due to foreign currency losses and the sale of a business in Argentina. Full fiscal year revenue also saw a slight drop to $65.85 billion from $66.06 billion.

Future Projections: HSBC has projected banking net interest income to be around $42 billion in 2025, alongside a target for operating expenses to grow by approximately 3% in 2025. This may suggest a cautious approach to expense management amidst fluctuating revenues.

Stocks: HSBC