HSBC yesterday hailed its booming British business and handed top bankers the biggest bonus pool in at least a decade.
Shares surged 7.9 per cent, or 102.6p, to a record high of 1394p as the bank reported better-than-expected profits of £22billion last year – with Britain its strongest market.
And the bonus pool of £2.9billion increased by 10 per cent compared to 2024 as HSBC shook up its pay structures to give best performers more.
Chief executive George Elhedery was paid £6.6million for his first full year in charge after taking the reins in 2024.
Annual profit was down by 7 per cent compared with the previous year after one-off charges relating to its China business and restructuring costs as senior managers’ roles were cut.
London-based HSBC was founded in Hong Kong and generates most of its revenue in Asia.
Boom time: HSBC Shares surged 7.9%, or 102.6p, to a record high of 1394p as the bank reported better-than-expected profits of £22bn last year – with Britain its strongest market
But finance director Pam Kaur said: ‘If you look at balance sheet growth, the strongest market is the UK.’
Kaur said that the UK retail business grew 5 per cent, largely due to mortgages, and the commercial banking arm was up 9 per cent, and added: ‘There is a greater opportunity for the UK economy to grow even further and it is in a much better position than European markets or even the lending growth seen in pockets of Asia – of course the US is growing at a faster rate.’
It is pivoting towards a Wall Street-style ‘eat what you kill’ pay structure where employees are directly rewarded in proportion to the revenue that they generate.
Elhedery said: ‘It’s a culture where talent and performance are better rewarded and differentiated in the way we reward them.
‘It’s also a culture that continuously attracts, and allows us to promote and retain talent.’
The surge in the share price gave HSBC a value of £236billion, putting it within touching distance of pharma giant AstraZeneca, the biggest company on the London stock market, with a value of £237billion.
Chris Beauchamp, chief market analyst at IG, said: ‘A very solid set of numbers confirms the strength of the business.
‘Like other UK banks, HSBC has seen an impressive move in its shares – a reminder that the global market rally is not driven by AI alone.
‘With more savings from restructuring, HSBC has the firepower to drive more improvements in technology, boosting underlying returns.’
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