Today, HSBC has announced the latest in its financial results. In this financial report, the firm made it clear that its revenue witnessed a pronounced decrease. Crunching the numbers, the firm had reported a 10% decline in revenue for 2021 as opposed to 2019, gaining only $50.4 billion in revenue. Profit before tax took a spectacular hit, however, with 2021’s $8.8 billion standing 34% lower than 2019’s metrics. As for profit after tax, this managed to be recorded at $6.1 billion.
Giving Out $0.15 A Share To Keep Shareholders
HSBC, as explained within its official press release, will give its shareholders an interim dividend of $0.15 per ordinary share for 2021. This comes in spite of the overall drop in both revenue and profit, and will be paid in cash.
HSBC’s revenue witnessed a 12% decline when viewed year-over-year for Q4 2021. The primary factor for this decrease in revenue was blamed on the lower interest rate environment.
The Mandatory Kind Words
Noel Quinn stands as HSBC’s Group Chief Executive, and gave the mandatory public statement about the matter at large. He started by praising his own company in a completely unbiased manner, citing the “exceptional” customer support levels within these troubling times. Alongside this, he claimed that the strong levels of surviving liquidity and balance sheet allowed those that rely on the firm to feel safe, according to Quinn.
He highlighted how his firm had managed to deliver solid levels of financial performance, with Asia being its strongest region. He declared that this strong performance will allow HSBC to lay down solid foundations to enact future growth. The Group Chief Executive stressed how proud he was of his people and everything they’ve done, as expected, and expressed his utmost gratitude towards the customers that stuck to HSBC throughout this volatile year.
HSBC Still Has Some Good News
Everything has a silver lining, and this seems to be the deposits part of HSBC’s financial report. According to the report, there was an increase of $204 billion in deposits reported for 2021. Alongside this, the bank reported general growth in all of its global businesses, with the global markets, in particular, reporting a jump in revenue. As a result of this, HSBC made it clear that there is a feeling of careful optimism when it comes to 2021. This is due to the bank reporting very good numbers for January of 2021.
The official press release detailed its declared strategy to handle the year of 2021. The statement detailed how HSBC will play into its strengths, at least for now, as well as accelerate and increase their various investments. The report also promised to increase the overall transformation within its business in order to compensate for its underperformance. The report stipulated that the bank will start capturing opportunities within the low-carbon economy, claiming to have the interest of the environment, and not their pockets, at heart.