HSBC on Tuesday announced bumper 2021 profits and plans to repurchase shares worth up to $1.0 billion as the Asia-focused bank continues its recovery from the coronavirus pandemic and major restructuring.

The lender endured a tumultuous 2020 like the rest of the banking sector as the virus outbreak rocked the economy just as it embarked on a restructuring programme to slash 35,000 jobs to refocus on its most profitable areas in Asia and the Middle East.

The London-headquartered bank on Tuesday reported pre-tax profit of $18.9 billion in 2021, up $10.1 billion on the year before, helped by lower bad loans and operating expenses.

Profit after tax was up $8.6 billion to $14.7 billion. Fourth quarter profit before tax rose $1.3 billion to $2.7 billion.

In a boon for investors, the bank also announced plans for a $1.0 billion share buyback, adding to a $2.0 billion buyback announced late last year.

"We have good momentum coming into 2022 and are confident that we can continue to execute against our strategy," Chief Executive Officer Noel Quinn said in the statement.

"We also remain cognisant of the potential impact that further Covid-19- related uncertainty and continued inflation might have on us and our clients."

HSBC makes 90 percent of its profit in Asia, with China and Hong Kong the major drivers of growth.

Early last year it published a new strategy laying out plans to redouble its attempt to seize more of the region's market.

HSBC wants to seek out more fee-based income, especially via wealth management for Asia's increasingly affluent.

It is also hopeful of a significant boost to income thanks to the prospect of higher interest rates to fight surging global inflation.

However its reliance on China could also be a vulnerability. Both the mainland and Hong Kong are among the last few remaining places rigidly sticking to a zero-Covid strategy.

That strategy has crumbled in Hong Kong this year during a wave of infections forcing the reimposition of economically painful restrictions and a deepening of the financial hub's international isolation.

After strong growth for much of last year, China's recovery also slowed in the last quarter.

"As a result, we expect China's government to take action to ease monetary and fiscal policies, with the aim of shoring up growth," group chairman Mark Tucker said in the results note.

He also highlighted a number of global economic headwinds on the horizon including "supply chain bottlenecks", high energy, and food prices driving up inflation and tighter monetary policies from central banks.

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Asian markets mixed, oil drops on Biden-Putin hope
Hong Kong (AFP) Feb 21, 2022
Equities were mixed Monday while oil prices eased after presidents Joe Biden and Vladimir Putin agreed in principle to hold a summit to try to find a way out of the Ukraine crisis. Warnings from US officials that Russia could invade its neighbour imminently have sent markets spiralling in the past week and sent crude surging towards $100 a barrel as traders fret over already tight supplies. The crisis has compounded worries about inflation, which is sitting at a 40-year high and putting pressure ... read more