HSBC’s pivot to Asia showed itself in 2022 with the region accounting for an increased share of capital allocation as well as global profits.
HSBC posted a pre-tax profit of $13.7 billion in Asia in 2022, according to its annual results, marking a 12 percent year-on-year increase. This was mainly due to higher net interest income from rising rates.
Overall, the region accounted for 78.3 percent of the bank’s global pre-tax profits, up from 64.8 percent in 2021.
Pivot to Asia
HSBC has touted a pivot to Asia in recent years as a strategy to improve profitability as shareholder value has been spotlighted, most notably by Ping An which has been calling for a break-up of the bank.
In 2022, HSBC reported that Asia accounted for 47 percent of capital allocation, up from 42 percent in 2021.
According to group CEO Noel Quinn, investments in technology and in organic as well as inorganic growth in Asia, especially in wealth and personal banking, were one of «the most significant changes» to HSBC's portfolio last year.
