HSBC Reports Revenue of $14.9Bn for 4Q22, up 24% YoY

HSBC Holdings plc has released its financial results for the fourth quarter and full year of 2022. The group reported full year revenue of $51.7bn, increasing 4% on a yearly basis, fueled by strong growth in net interest income.

Profit before tax declined $1.4bn from that of 2021to $17.5bn, including an impairment on the planned sale of the group’s retail banking operations in France of $2.4bn. The adjusted figure stood at $24.0bn, $3.4bn higher than that of 2021. Profit after tax rose by $2.0bn to $16.7bn.

Net interest margin (NIM) was 1.48%, up 28 basis points year-over-over, reflecting interest rate rises. Expected credit losses and other credit impairment charges stood at $3.6bn. Operating expenses fell 4% on a yearly basis to $33.3bn, and the adjusted figure was $30.5bn, up 1.2%. Besides, common equity tier 1 (CET1) capital ratio was 14.2%, reducing 1.6 percentage points.

Regarding the fourth quarter of 2022, revenue jumped 24% year-over-year to $14.9bn, with the adjusted figure up 38% to $15.4bn. Profit before tax came in at $5.2bn, growing $2.5bn over the last same period, and the adjusted figure was $6.8bn, up 92%. Profit after tax rose by $2.9bn to $4.9bn. 

Expected credit losses for the quarter increased from 4Q21's $0.5bn to $1.4bn, and operating expenses were $8.9bn, down 6% year-over-year.

Noel Quinn, Group Chief Executive, said: "2022 was another good year for HSBC. We are on track to deliver higher returns in 2023 and have built a platform for further value creation. With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed."

At the end of the last year, the banking giant has filed two crypto-related trademark applications for its name and logo​ with the United States Patent and Trademark Office (USPTO). This indicates the bank's plans for a number of digital products and services, including those related to the exchange and transfer of virtual currencies.