HSBC (HSBA) Q3 2024 earnings summary

Executive summary

• Profit before tax for 3Q24 was $8.5bn, up 11% year-over-year, driven by strong performances in Wealth, Wholesale Transaction Banking, and Global Banking and Markets.

• Revenue reached $17.0bn, up $1.1bn or 7% year-over-year, with notable growth in fee and other income, especially in Wealth and trading activities.

• Organisational structure simplified to four businesses in two regions, with a streamlined executive committee to accelerate strategic execution, effective January 1.

• Announced $4.8bn in distributions for 3Q24, including a $0.10 per share interim dividend and up to $3bn share buyback; total 2024 distributions reached $18.4bn.

• Continued focus on cost discipline, capital returns, and leadership in core markets.

Financial highlights

• Profit before tax rose to $8.5bn in 3Q24, with profit after tax at $6.7bn; 9M24 profit before tax was $30.0bn.

• Revenue increased to $17.0bn in 3Q24, up $1.1bn year-over-year; 9M24 revenue was $54.3bn.

• Net interest income for 3Q24 was $7.6bn, down $1.6bn year-over-year, while fee and other income grew strongly.

• CET1 ratio at 15.2%, up 0.2ppt from 2Q24; liquidity coverage ratio at 137%.

• ECL charge for 3Q24 was $1.0bn, with a 9M24 annualised charge of 28bps, in line with guidance.

Outlook and guidance

• Mid-teens return on tangible equity targeted for 2024 and 2025, excluding notable items.

• FY24 banking NII guidance remains at ~$43bn; cost growth targeted at ~5% for 2024.

• ECL charges expected within 30–40bps of average gross loans for 2024.

• CET1 ratio to be managed within 14–14.5% medium-term range; dividend payout ratio target of 50% for 2024.

• Sale of Argentina business expected to complete in 4Q24; further business update at FY24 results.