HSBC reported annual profits that exceeded estimates, driven by growth in wealth and markets businesses, while unveiling cost-cutting targets under its new CEO Georges Elhedery. The bank announced a $2 billion share buyback and aims to reduce costs by $300 million in 2025 and achieve an annualized $1.5 billion cost reduction by the end of 2026. HSBC’s profit before tax for 2024 was $32.3 billion, up from $30.3 billion the previous year. Elhedery, who became CEO in September, is refocusing the bank on Asia, where it generates most of its profits. The lender plans to trim personnel expenses by 8% over the next two years and targets a mid-teens return on average tangible equity from 2025 to 2027. HSBC also declared a fourth interim dividend of $0.36 per share, bringing total dividends for 2024 to $0.87, including a special dividend from the sale of its Canadian business. Elhedery has restructured senior management and reorganized divisions to prioritize Asian markets. — news from CNN
