HSBC Wealth saw revenues of $8.1bn in 2022, 8% or $0.7bn down from 2021, attributed to lower life insurance manufacturing.
However, investments in Asia aided net new invested assets to reach $80bn during 2022 for HSBC.
Global Private Banking revenue was $0.2bn, or 13%, higher year-on-year to hit $1.978bn thanks to the positive impact of rising interest rates on net interest income. Also, this was slightly offset by a decline in brokerage and trading revenue, displaying reduced client activity.
HSBC in 2022
For the group as a whole, reported profit before tax fell by $1.4bn to $17.5bn year-on-year.
In addition, adjusted profit before tax increased by $3.4bn to $24bn while revenue increased by 4% to $51.7bn. Revenue was driven by strong growth in net interest income and increases in all global businesses, including Global Private Banking.
On the other hand, this was offset by a $3.1bn adverse impact of foreign currency translation differences, as well as impairment from the sale of France operations. Adverse movements in markets did not help Wealth and Personal Banking either.
In terms of people, HSBC serves around 39 million customers worldwide with 219,000 full-time equivalent employees.
Noel Quinn, group chief executive of HSBC, said: “2022 was another good year for HSBC. We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world. This contributed to a strong overall financial performance. 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.”
Steve Clayton, head of equity funds, Hargreaves Lansdown, added: “The numbers themselves are strong compared to market expectations but the market was hoping for a little more good news in the outlook statement, so the shares are down by around 1% this morning.
“The business is performing well, but much depends on the group maintaining robust cost controls. That means more branch closures in the UK this year, with another 130 set to close. But for shareholders, that intention to pay out half of earnings suggests an ongoing yield from HSBC shares of perhaps as much as 7% this year and next, with that extra USD21c special dividend on top.
“HSBC represents one of the most direct routes of investing into the reopening of the Chinese economy. Whilst that remains on track, we would expect to see continuing encouraging trading news coming from the bank.”