Company Overview
HSBC is one of the world’s largest banking and financial services organizations. It serves approximately 39 million customers through its global businesses: Wealth and Personal Banking; Commercial Banking; and Global Banking & Markets. Its network covers 62 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.
Headquartered in London, The Hongkong and Shanghai Banking Corporation Limited’s Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets constitute 41.3%, 34.6%, and 24.1% of the bank’s FY2023’s revenue respectively. As of 23 February 2024, HSBC Bank has a market cap of USD143.86bn with credit ratings of A+/A3/A- from (Fitch/Moody’s/S&P) respectively.
FY2023 Financials
In HSBC FY2023 results, the bank reported a growth in its revenue of 30% YoY from USD 50.6bn in FY22 to USD 66bn in FY23. This was mainly driven by an increase in net interest income of USD 5.4bn from all three global businesses due to higher interest rate environment. Non-interest income increased by $10bn, reflecting increased trading and fair value income of USD 6.4bn, mainly in Global Banking and Markets, and the favourable year-on-year impact from the impairment relating to the sale of its retail banking operations in France and provisional gain on the acquisition of SVB UK.
Net Interest Income (NII) and Net Interest Margin (NIM) were the highest since 2019 with NII increasing 17.8% Y.o.Y to USD 35bn compared with FY2022. While NIM for 2023 was reported at 1.66, 24bps higher compared with 2022.
In terms of its credit position, HSBC’s CET1 ratio improved by 0.6% from 14.2% in FY2022 to 14.8% in FY2023. This level of CET1 ratio that HSBC is currently holding is also in line with the bank’s guidance which it intends to maintain its common equity tier 1 (CET1) ratio within the medium-term target range of 14% to 14.5%. HSBC’s liquidity coverage ratio (LCR) improved to 136% from 132% in the previous year and is well above the regulatory requirement of 100% once again.
Current HSBC Bank’s US and SGD Bonds in the market (As at 23rd February 2024)