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LONDON - HSBC Holdings plc (NYSE:HSBC) celebrated its 160th anniversary with the announcement of record profits and increased shareholder returns at its Annual General Meeting held at The InterContinental London O2. Group Chairman Mark Tucker and Group Chief Executive Georges Elhedery delivered statements highlighting the financial institution’s strong performance and its strategic plans moving forward.
In 2024, HSBC achieved a profit before tax of $32.3 billion, a $2 billion increase from the previous year, meeting its target with a reported return on tangible equity of 14.6%. The bank attributed its success to a diversified portfolio and international strategy that continues to pay off. The first quarter of 2025 further evidenced this strategy’s effectiveness, with an 11% increase in profit before tax and an annualized return on tangible equity of 18.4%, excluding notable items.
Shareholders were rewarded with a total return of $26.9 billion for 2024, including a special dividend of $0.21 per share following the sale of HSBC Bank Canada and a full-year dividend of $0.66 per share, the highest since 2007. Additionally, the company completed four share buy-backs totaling up to $11 billion. The share price increase of over 20% combined with dividends resulted in a total shareholder return of more than 30% for the year.
Looking ahead, HSBC announced an interim dividend for 2025 of $0.10 per share and a new share buy-back of up to $3 billion, reinforcing the bank’s strong dividend outlook and target payout ratio of 50% for 2025, excluding notable items. The bank remains confident in its ability to deliver mid-teens return on tangible equity through 2027 despite global economic uncertainties.
Elhedery outlined HSBC’s commitment to simplifying its structure to align with its strategy, focusing on customer satisfaction and delivering attractive returns. Investments in technology, including AI and data analytics, will play a key role in improving efficiency and customer protection. HSBC’s net zero ambition by 2050 remains a priority, with plans to review interim financed emissions targets and associated policies.
As Mark Tucker presided over his last AGM as Group Chairman, Elhedery expressed gratitude for Tucker’s mentorship and leadership, which leaves HSBC well-positioned for the future.
This article is based on a press release statement from HSBC Holdings plc.
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