- HSBC (HSBC -0.3%) revises its return on average tangible equity target to at least of 10% in the medium term vs. its original target of 10%-12% in 2022.
- "We recognize a number of fundamental changes, including the prospect of prolonged low interest rates, the significant increase in digital engagement from customers and the enhanced focus on the environment, and we have aligned our strategy accordingly," the company said in its earnings statement.
- The company said it plans to sharpen focus on areas where it's the strongest, increase and accelerate investments, and continue to transform its underperforming businesses.
- As to its drivers of growth, HSBC points to its wealth and personal banking business with a particular focus on Asia and the Middle East, Commercial Banking, and Global Banking & Markets unit, which leads in Asia and the Middle East.
- Q4 adjusted profit before tax slumped 50% Y/Y to $2.2B and adjusted revenue declined 14%, primarily due to the impact of lower global interest rates.
- Q4 net interest margin of 1.22% improved by 2 basis points from Q3.
- Q4 expected credit loss of $1.18B increased from $696M a year ago.
- Q4 costs edged down to $9.11B from $9.18B.
- Previously (Feb. 22): HSBC Holdings reports FY results