HSBC Holdings PLC (LON:HSBA) posted a 6.6% rise in annual profit, driven by gains from its wealth management and trading divisions, despite a decline in net interest income (NII). The bank also announced a new $2 billion share buyback, reinforcing its commitment to shareholder returns.
Key Financial Highlights

Profit before tax: $32.3 billion in 2024 (up 6.6% from $30.3 billion in 2023).
Excluding notable items: Profit rose $1.4 billion to $34.1 billion.
Net interest income (NII): Fell by $3.1 billion to $32.7 billion, reflecting higher deposit costs and asset sales.
2025 NII Forecast: HSBC expects $42 billion in NII, but margin pressure remains.
Dividends: A fourth interim dividend of $0.36 per share, bringing total 2024 payout to $0.87 per share, including a special dividend from its Canada business sale.

HSBC’s Strategic Focus
CEO Georges Elhedery is pushing cost restructuring, aiming to cut $1.5 billion in annual expenses by 2026. The bank’s share buybacks totaled $9 billion in 2024, reducing its share count by 11% since early 2023.
Market Reaction & Outlook

HSBC’s Hong Kong-listed shares dipped 0.3% post-earnings.
Investors remain cautious as margin pressure and cost reductions continue to shape HSBC’s future.

Relevant Financial APIs for Analysis

Balance Sheet Statements API – Track HSBC’s financial health and capital allocation.
Company Rating API – Evaluate HSBC’s investment outlook post-earnings.

Conclusion
HSBC’s solid earnings growth, aggressive cost management, and capital returns demonstrate financial strength, but declining NII remains a concern for investors. The bank’s 2025 performance will hinge on margin stabilization and strategic cost cuts.