(HSBC) HSBC posted a profit after tax of $2.0 billion in the fourth quarter of 2021, an increase of $1.1 billion from the prior year.
The bank’s profit was earned from a reported revenue of $12.0 billion in the fourth quarter, up 2% from the prior year.
For FY21, the reported profit after tax was $14.7 billion, an increase of $8.6 billion from the prior year.
The bank said that all its regions remained profitable in 2021, with the HSBC UK reporting a profit before tax increase of $4.5 billion to $4.8 billion. Asian operations added $12.2 billion to the bank’s reported profit before tax.
Following a robust quarter, HSBC boosted its bonus pool by about 31% to $3.5 billion in attempts to retail staff.
The lender introduced a $2 billion share buyback and reinstated dividends. The bank also plans an additional $1 billion share repurchase and would pay a dividend of $0.18 per share in the second half of the year, with the total payout at $0.25 for FY21.
HSBC now projects a mid-single-digit lending growth in 2022, with key headwinds in Asia including China’s weak property sector and inflationary pressures. The lender targets dividends within the 40% to 55% payout ratio range.
HSBC: NYSE is currently down -0.87% on premarket.
