The banking behemoth HSBC is hoping that the low interest rates that have resulted in a big increase in revenues will continue into this year.
The London-based bank published profits on Tuesday (Feb. 21), revealing a profit before tax of $5.2 billion for the fourth quarter of 2022, up more than 90% from the same period in 2021.
According to the quarterly release, this result reflects “strong reported revenue growth and decreased reported operating expenditures,” with revenues driven by increases in net interest income.
“Our revenue outlook remains solid,” according to the report, which forecasts net interest income of at least $36 billion in 2023 based on “the existing market consensus for global central bank rates.”
According to Reuters, HSBC is also incurring a $300 million loss on the sale of its Russian business. Bank executives expect the transaction to go place this year, albeit it must first clear certain regulatory barriers.
Another British bank, NatWest, stated last week that it believes interest rates in the nation have peaked.
According to the bank’s results presentation, the Bank of England base rate will peak at 4% in the first quarter, remain stable through the first quarter of following year, and begin to fall in the second half of 2024.