HSBC increases its 2015 full year dividend by 2% in $ terms

DividendMax Ltd.

HSBC increases its 2015 full year dividend by 2% in $ terms

Reported PBT up 1% in 2015 at $18,867m, compared with $18,680m in 2014. This primarily reflected a favourable movement in significant items.

Adjusted PBT down 7% at $20,418m, compared with $21,976m in 2014.

Adjusted revenue up 1% at $57,765m, compared with $57,227m in 2014. The increase was mainly in client-facing GB&M (7%), CMB (3%) and Principal RBWM (2%).

Adjusted loan impairment charges up 17% at $3,721m, compared with $3,168m in 2014. The increases were across a number of countries, reflective of local themes and characteristics.

Adjusted operating expenses up 5% at $36,182m reflecting wage inflation, business growth and investment in regulatory programmes and compliance. Excluding the UK bank levy, adjusted operating expenses in the second half of 2015 were broadly in line with the first half of the year reflecting strong cost management and the initial effect of our cost saving programmes.

Return on equity of 7.2%, compared with 7.3% in 2014.

Earnings per share and dividends per ordinary share in respect of the year were $0.65 and $0.51, respectively, compared with $0.69 and $0.50 for 2014.

Strong capital base with a CRD IV end point CET1 capital ratio of 11.9% at 31 December 2015, up from 11.1% at 31 December 2014.

Leverage ratio remained strong at 5.0%.

Clearly defined actions to capture value from our network and connecting our customers to opportunities.

- Progress on reducing Group RWAs with a $124bn reduction or 45% of our 2017 target achieved.

- Signed agreement to sell operations in Brazil.

- Revenue from transaction banking products up 4% highlighting value and potential of our international network.

- Development of Asia Business gaining momentum. Revenue growth in excess of GDP in majority of Asian markets.

Stuart Gulliver, Group Chief Executive said:

'Targeted investment, prudent lending and our diversified, universal banking business model helped us achieve revenue growth in a difficult market environment, whilst also reducing risk-weighted assets. Strict cost management slowed cost growth and our cautious approach to credit helped keep loan impairment charges low. We made a good start in implementing the plans that we announced at our Investor Update in June. Delivering against these plans remains our primary focus.'

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