Our strategy’s continuing to deliver for shareholders
Our strong financial performance is enabling us to provide increased returns, our Group Chairman Sir Mark Tucker told our informal shareholders’ meeting in Hong Kong.
The meeting is an annual opportunity for our senior leadership to engage with retail shareholders in the city.
Sir Mark (pictured above, far right) told those gathered at the Hopewell Hotel, in Wan Chai, that the bank had three key messages for them:
“First, our strategy is continuing to deliver. That is demonstrated by the strong financial performance of the Group in 2024,” he said.
“Second, this performance has allowed us to reward you, our valued shareholders, with increased returns.
”And third, looking ahead, we are confident that we can continue to deliver strong performance and returns and stand behind a strong dividend outlook.”
Sir Mark thanked the shareholders for their “continued, strong and loyal support over the last 12 months”, adding: “It is greatly appreciated and highly valued by us all.”
On stage alongside Sir Mark were Group CEO Georges Elhedery; Peter Wong, Chairman of The Hongkong and Shanghai Banking Corporation; David Liao, our Co-CEO, Asia and Middle East; and Luanne Lim, HSBC Hong Kong Chief Executive.
What else was said at the meeting
Sir Mark reflected on the bank’s 160th anniversary celebrations.
“It has been wonderful to see our 160th anniversary celebrated across Hong Kong, including at our HSBC Global Investment Summit last week and at the Hong Kong Rugby Sevens over the weekend – both of which showcased the best of Hong Kong to the world,” he said.
“As Hong Kong’s global bank, we will continue to do all we can to ensure that this great city leads on the international stage.”
Turning to our 2024 financial performance, Sir Mark said: “2024 was a very good year for HSBC.
“We delivered record profit before tax of US$32.3 billion – an increase of US$2.0bn compared with 2023.
“Our reported return on tangible equity was 14.6 per cent, or 16 per cent excluding material notable items – in line with our mid-teens target.”
He added: “This strong financial performance enabled us to reward you, our loyal shareholders, with higher returns.
“In total, we returned US$26.9 billion to shareholders in respect of 2024.
“The total dividend announced for 2024 was 87 US cents per share, which amounts to US$15.9 billion.
“This includes the special dividend of 21 US cents per share, totalling US$3.9 billion, paid in June following the completion of the sale of HSBC Bank Canada.
“Excluding this special dividend, the full-year dividend of 66 US cents per share was higher than that of 2023.
“In addition, we announced four share buybacks in respect of 2024 worth a total of up to US$11 billion.”
Sir Mark continued: “Since the start of 2023, we have repurchased 11 per cent of the issued share count.
“Combined with our sustained levels of profitability, this led to greater earnings and dividends per share for our shareholders.
“Dividends paid in 2024, together with a more than 20 per cent increase in the share price, delivered a total shareholder return for the year of more than 30 per cent.”
Georges Elhedery, Group CEO
Georges reflected on his first seven months as Group CEO, saying: “The opportunity to lead HSBC is a privilege.
“Like each of my predecessors, I see my responsibility as being to deliver sustainable, strategic growth for you, our loyal shareholders.
“We begin from a position of strength, which is reinforced by our 2024 performance, as Mark has described.”
He also reflected on the reorganisation of the bank, which became effective on 1 January, to simplify our structure and align it to our strategy.
Georges added: “I am confident about our future and what we can achieve. As we celebrate our 160th anniversary, our history and heritage stand us in good stead.
“In so many ways, adapting to new economic realities and technologies is what we have always done.
“It brings out the best in our people and culture, especially when acting as a trusted adviser to our customers as they navigate the world’s economic uncertainties and look towards new opportunities.
“The actions we are taking will have clear and tangible impact.
“Our ambition is to unlock HSBC’s full potential for the benefit of all our stakeholders, provide excellent customer outcomes that enhance our franchise and brand, and generate the strategic growth that will deliver attractive returns for you, our loyal shareholders.”
Peter Wong, Chairman of The Hongkong and Shanghai Banking Corporation
“In 1865, HSBC was established in Hong Kong. It was created to assist businesses with trade finance and meet the needs of the real economy,” said Peter, who spoke in Cantonese.
“In this 160 years of history, whether the economic environment has been good or bad, we have focused on business development and bringing good returns to our shareholders.”
Peter spoke about the importance of Hong Kong to HSBC and how we’re helping to enhance Hong Kong’s status as an international city.
He reflected on the ways in which we support small businesses and personal customers, and the work we’re doing to promote the development of financial markets and asset tokenisation.
He also highlighted our ongoing support for the community through the Hongkong Bank Foundation, which has donated more than HK$2.6 billion (US$335 million), in “caring for the elderly, nurturing the young people and the three aspects of promoting sustainable development”.
“A total of more than 10,000 projects have been supported and more than seven million people have benefited,” Peter said.
“At the same time, our colleagues actively participate in volunteer service. Over the years, the aggregate service hours of the HSBC volunteers have reached nearly 1.1 million hours.”
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