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HSBC has revealed the goal of saving $ 300 million this year and lowering $ 1.5 billion from the annual cost base by the end of next year, as he detailed the impact of George Ilidari CEO for the first time.
The bank said on Wednesday that it will aim to republish about $ 1.5 billion of “non -strategic activities” to areas that had a competitive advantage. She expected her actions to lead to $ 1.8 billion in costs, including Severance, in 2025 and 2026.
HSBC gave numbers in the all -year profit report, which showed a profit before the tax of $ 2.3 billion in the last three months of last year, an increase of $ 1.3 billion over last year.
Since he became the CEO of September, Elheedry has begun to restructure the UK bank. Changes include re -drawing HSBC operations into the “Eastern” and “West” units, closing the main parts of their investment banking business and integrating two of its three major units. In this process, an expensive layer of senior bankers is destroyed.
“I have put a smaller team than the exceptional talented leaders led by a mental mentality directed towards growth and the constant focus on managing our costs and a dynamic head.. Ilidiri said:” We look forward to the future with the confidence and clarity of the goal. ”
Hong Kong’s HSBC shares increased by 1.3 percent on Wednesday, but since then, gains have increased by 0.7 percent.
The report has set a proposed payment package of up to 15.3 million pounds for Elhedary, which may rise to 19.8 million pounds if the bank’s share price jumps by 50 percent. The bank kept the total value of its bonus set steadily at $ 3.8 billion for 2024.
The number of equivalent employees fully decreased by more than 9500 last year to 211,304, partly due to the sale of HSBC units, including in Canada, France and Argentina.
The pre -tax profit for the year increased to December 6.6 percent to $ 32.3 billion, overcoming the estimates of analysts of $ 31.7 billion.
HSBC unveiled the distribution of temporary profits of 36 cents per share, and reached a total of 2024 to 87 cents, and said it had planned to rebuild $ 2 billion, which is the latest series in recent years.
The bank said that the costs increased by 3 percent to 33 billion dollars, in part to inflation and investment in technology.
The net interest margin, which is a decisive scale for lending profit, decreased by 10 basis points to 1.56 percent.
Margin – the difference between the interest the bank receives from providing loans and the rate it pays to the depositors – has risen alongside interest rates in recent years but began to decline last year, a sign that support from the high interest rates has been suspended.
This puts the bank under pressure to reduce costs and increase income in areas less dependent on higher rates. The net interest revenues, which represent more than half of its revenues, amounted to 32.7 billion dollars for the whole year, a decrease of 35.8 billion dollars a year ago.
3.4 billion dollars in the provisions of bad loans achieved more than $ 3.1 billion that analysts expect, as it prepared for partially related losses to follow -up of Chinese and Chinese property.
The bank has just more than one billion dollars in investment banking services for 2024, which is a small part of its total revenues of $ 65.9 billion. HSBC said last month that it was closing the integration, consulting acquisitions and capital market companies, outside Asia and the Middle East.
Its return on concrete stocks, a scale of profitability, was 14.6 percent, in line with the number of the previous year.