As a result of absorbing the cost of selling its French retail banking operations and preparing to sell its Canadian business, HSBC’s pretax profit for the full year fell by $1.4 billion to $17.5 billion. The bank intends to distribute the proceeds from the sale to shareholders.
Noel Quinn, chief executive of HSBC, stated: “HSBC enjoyed another prosperous year in 2022. We are on track to generate increased profits in 2023.” In an effort to increase profits and reduce expenses, HSBC has shed jobs in recent years and announced the closure of 114 additional UK branches in November. Mr. Quinn also alluded to future layoffs, stating, “We are now considering up to $300 million in additional costs for separations in 2023.”
In recent months, central banks around the world have increased interest rates in an effort to curb inflation. In response, the chief executives of HSBC, Lloyds, NatWest, and Barclays in the United Kingdom stated that the debate was improperly centred on the interest rates offered on easy-access savings accounts, which typically yield less than 1 percent.
The banking behemoth HSBC reported a near doubling of quarterly profits for the final three months of 2022, as a result of rising global interest rates. However, pre-tax profit for the entire year decreased by $1.4 billion to $17.5 billion due to costs associated with selling their French retail banking operations and preparing to sell its Canadian business.
The CEO of HSBC, Noel Quinn, commented on the results, stating, “HSBC had another successful year in 2022. We are on track to generate increased returns in 2023.” The bank is cutting jobs and closing branches in an effort to increase profits and decrease expenses. Mr. Quinn also stated, “We are now considering additional costs of up to $300 million for separation in 2023.”
As a method of controlling rising prices, central banks around the world have raised interest rates. In response, the chief executives of HSBC, Lloyds, NatWest, and Barclays in the United Kingdom stated that the debate was improperly centred on interest rates for easy-access savings accounts, which typically yield less than 1 percent.
Despite challenging market conditions, HSBC has reported positive news, with their quarterly profits nearly doubling due to rising global interest rates. To maximise profits and decrease expenses, they are implementing changes such as layoffs and branch closures. In an effort to curb rising prices, central banks around the world have increased interest rates, sparking debate over the rates offered on easy-access savings accounts.
