HSBC Q4 profits surge on global interest rate hikes

HSBC said quarterly profits almost doubled, driven by the rise in global interest rates, and unveiled a special dividend.

The Asia-focused bank reported pretax earnings of $5.2bn, up from $2.7bn and ahead of the $4.96bn company-compiled average.

Annual expected credit losses rose to $3.6bn, more than forecasts of $3.2bn, due to rising inflation and China's struggling property market.

Full-year profit fell to $17.5bn from $18.9bn, largely down to a $2.4bn charge on the sale of its retail banking operations in France.

HSBC is also in the process of selling its business in Canada for $10bn. The bank said it planned to use the money raised from that sale to make payouts to shareholders once the deal is completed.

Investors will receive a special dividend of $0.21 per share as the bank also pledged more regular payouts and a new share buyback.

HSBC said it expected net interest income of at least $36bn in 2023, based on the current market consensus for global central bank rates.

Reporting by Frank Prenesti for Sharecast