HSBC, one of the world’s largest banking and financial services institutions, has announced a share buyback of up to $2 billion as its annual profit jumped by 6.5%. The bank’s strong financial performance for the year has allowed it to return value to its shareholders through the buyback program.
HSBC reported a profit before tax of $21.7 billion for the year, up from $20.3 billion in the previous year. This increase in profit was driven by growth in the bank’s core markets, particularly in Asia. HSBC’s revenue also increased by 5.9% to $55.4 billion, reflecting strong performance across its business lines.
The share buyback program will allow HSBC to repurchase its own shares on the open market, effectively reducing the number of shares outstanding and boosting the value of the remaining shares. This is a common strategy used by companies to return excess capital to shareholders and boost the stock price.
HSBC’s decision to initiate a share buyback program comes as the bank continues to focus on improving profitability and delivering value to its shareholders. The buyback program is expected to be completed over the next 12 months, subject to market conditions and regulatory approval.
In addition to the share buyback program, HSBC also announced a final dividend of $0.51 per share, bringing the total dividend for the year to $0.85 per share. This represents an increase of 6.3% compared to the previous year, demonstrating the bank’s commitment to rewarding its shareholders.
HSBC’s strong financial performance and decision to return value to shareholders through a share buyback program are positive signs for the bank’s future growth and profitability. With a solid foundation in place, HSBC is well-positioned to navigate the challenges of the global economic environment and continue to deliver value to its customers and shareholders alike.