2019 RESULTS – HIGHLIGHTS
Noel Quinn, Group Chief Executive, said:
“The Group’s 2019 performance was resilient, however parts of our business are not delivering acceptable returns. We are therefore
outlining a revised plan to increase returns for investors, create the capacity for future investment, and build a platform for sustainable
growth. We have already begun to implement this plan, which my management team and I are committed to executing at pace.”
2019 financial performance (vs 2018)
• Reported profit attributable to ordinary shareholders down 53% to $6.0bn, materially impacted by a goodwill impairment of
$7.3bn. Reported profit before tax down 33% to $13.3bn. Reported revenue up 4% and reported operating expenses up 22% due to a
goodwill impairment of $7.3bn.
• Goodwill impairment of $7.3bn, primarily $4.0bn related to Global Banking and Markets (‘GB&M’) and $2.5bn in Commercial
Banking (‘CMB’) in Europe. This reflected lower long-term economic growth rate assumptions, and additionally for GB&M, the planned
reshaping of the business.
• Adjusted revenue up 5.9% to $55.4bn and adjusted profit before tax up 5% to $22.2bn, reflecting good revenue growth in
Retail Banking and Wealth Management (‘RBWM’), Global Private Banking (‘GPB’) and CMB, together with improved cost control.
• Adjusted revenue in Asia up 7% to $30.5bn and adjusted profit before tax up 6% to $18.6bn. Within this, there was a resilient
performance by Hong Kong, with adjusted profit before tax up 5% to $12.1bn.
• Adjusted expected credit losses and other credit impairment charges (‘ECL’) up $1.1bn to $2.8bn from higher charges in
CMB and RBWM.
• Positive adjusted jaws of 3.1%, reflecting improving cost discipline. Adjusted operating expense growth of 2.8%, well below
the growth rate in 2018 (compared with 2017).
• Return on average tangible equity (‘RoTE’) down 20 basis points (‘bps’) to 8.4%, supported by a resilient Hong Kong
performance.
• Earnings per share of $0.30, including a $0.36 per share impact of the goodwill impairment. Dividends per share in respect of
2019 of $0.51.
• We continue to monitor the recent coronavirus outbreak, which is causing economic disruption in Hong Kong and mainland China and
may impact performance in 2020.
4Q19 financial performance
And later;
Fourth interim dividend for 2019
After the end of the year, the Directors declared a fourth interim dividend in respect of the financial year ended 31 December 2019 of
$0.21 per ordinary share, a distribution of approximately $4,266m. The fourth interim dividend will be payable on 14 April 2020 to holders
on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 28 February
2020. No liability was recorded in the financial statements in respect of the fourth interim dividend for 2019.
The dividend will be payable in US dollars, pounds sterling or Hong Kong dollars, or a combination of these currencies, at the forward
exchange rates quoted by HSBC Bank plc in London at or about 11.00am on 30 March 2020. A scrip dividend will also be offered.
Particulars of these arrangements will be sent to shareholders on or about 11 March 2020 and elections must be received
by 26 March 2020. The ordinary shares in London, Hong Kong, Paris and Bermuda, and American Depositary Shares (‘ADSs’) in New
York will be quoted ex-dividend on 27 February 2020.
https://www.hsbc.com/investors/results- ... ouncements
