AmazonScience/document-haystack

1Group Chairman’s statement2In 2023, reported profit before tax was  3$30.3bn, which was an increase of $13.3bn 4compared with 2022. This was due mainly to 5higher revenue and a number of notable items. 6Our three global businesses delivered good 7revenue growth, and we ended the year with 8strong capital, funding and liquidity positions.9We remain committed to sharing the benefits 10of our improved performance with our 11shareholders. The Board approved a fourth 12quarterly dividend of $0.31 per share, bringing 13the total dividend for 2023 to $0.61 per share. 14Furthermore, in 2023 we announced three 15share buy-backs worth a total of $7bn and, 16today, have announced a further share buy-17back of up to $2bn.18The planned sale of our banking operations 19in Canada received final approval from the 20Canadian government at the end of last year. 21Subject to completion of the transaction, 22which is expected in the first 23quarter of 2024, 24the Board will consider a special dividend of 25$0.21 per share, to be paid in the first half of 262024, as a priority use of the proceeds.27With this anticipated transaction and the 28completion of the sale of our retail banking 29business in France last month, our focus 30has moved to investing for growth, while 31maintaining efficiency. Two examples of 32growth opportunities last year were the 33agreed acquisition of Citi’s retail wealth 34business in mainland China, which will 35help accelerate our Wealth strategy, and 36the acquisition of SVB UK, following the 37difficulties experienced by its US parent entity. 38Acquiring SVB UK was opportunistic, but the 39deal made excellent strategic sense for HSBC, 40and it also helped to protect clients, safeguard 41jobs and maintain fina42ncial stability.43Technology and sustainability are two of the 44trends transforming banking and the world 45around us. The opportunities from generative 46AI are among the most transformative within 47my working life. We are actively exploring a 48number of use cases, while also working to 49manage the associated risks.50Meanwhile the global climate challenge is 51becoming increasingly acute. Our presence 52in many of the sectors and markets where 53the need to reduce emissions is the greatest 54provides us with an opportunity to work with 55our clients to help address it. This is set out 56in our first net zero transition plan. The Board 57discussed and contributed to the net zero 58transition plan in depth. We believe that it is 59a realistic and ambitious assessment of the 60long-term journey ahead, as we continue to 61work with our clients on their transitions to 62a low-carbon future. It is clear there will be 63many uncertainties and dependencies, and 64that our approach will need to continue to 65evolve with the real world around us.66The global economy performed better 67than expected in 2023, but growth 68remained sluggish and the economic 69environment was challenging for many  70of our customers. Although inflation fell 71globally, core inflation levels and interest 72rates remained elevated. There was also 73significant variability in growth from 74market to market and increased volatility 75within the banking sector. Our core 76purpose of ‘opening up a world of 77opportunity’ underlines our focus on 78helping our customers and clients to 79navigate this complexity and access 80growth, wherever it is.81Mark E Tucker82Group Chairman83Against a challenging global economic and political  84backdrop, HSBC’s strategy has delivered improved financial 85performance and increased returns for shareholders86Many of our customers and colleagues are 87living through very difficult times. Higher 88interest rates have had a significant impact 89on businesses and households, and we will 90remain conscious of this with interest rates 91expected to begin to fall back in 2024. The 92wars between Russia and Ukraine, and now 93between Israel and Hamas, are absolutely 94devastating. Our thoughts are with all those 95impacted, including our colleagues in those 96parts of the world, and their families and 97friends. Their resilience, professionalism and 98care for one another during these most testing 99of times has been, and is, exceptional.100Progress and performance101Turning to our performance, I want to again 102pay tribute to my colleagues. The record 103profit performance that we delivered in 2023 104was supported by the impact of interest rates 105on our strong balance sheet, but it was also 106testament to the tireless efforts of our people 107around the world. I would like to thank them 108sincerely for their hard work, dedication and 109commitment to serving our customers.1106 HSBC Holdings plc Annual Report and Accounts 2023111Strategic report