HSBC's Annual Profit Dips 7% Amid Impairments, But Bank Raises Key Target

• HSBC Holdings reported a 7% drop in full-year pretax profit, impacted by $4.9 billion in one-off charges.
• The charges included a $2.1 billion write-off related to China's Bank of Communications, $1.4 billion in legal provisions, and $1 billion in restructuring costs.
• Despite the profit decline, HSBC raised its target for return on tangible equity to "17% or better" through 2028.
• CEO Georges Elhedery has reorganized divisions, shed sub-scale units, and initiated 11 business exits globally.
• HSBC will pay a final dividend of 45 cents a share, bringing the total for the year to 75 cents, down from 87 cents in 2024.