HSBC Plans $2 Bln Buyback, $1.8 Bln Cost Savings; To Pay CEO GBP 5.36 Mln In FY24

HSBC Holdings

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(RTTNews) - British lending major HSBC Holdings Plc (HSBA.L, HSBC), while announcing fourth-quarter results, on Wednesday announced dividends and a new $2 billion share buyback. The bank further said that it plans cost savings of $1.8 billion by the end of fiscal 2026, and that CEO Georges Elhedery will be paid a total of 5.36 million pounds including fixed and variable Components in 2024.

The Board has approved a fourth interim dividend of $0.36 per share, resulting in a total of $0.87 per share in respect of 2024. The dividend includes a special dividend of $0.21 per share.

The company said it intends to initiate a share buy-back of up to $2 billion. The program is expected to commence shortly and complete by the first quarter 2025 results announcement.

Regarding its cost target, HSBC said it aims to generate around $300 million of cost reductions in 2025, with a commitment to an annualised reduction of $1.5 billion in its cost base expected by the end of 2026.

To deliver these reductions, the bank plans to incur severance and other up-front costs of $1.8 billion over 2025 and 2026.

HSBC aims to redeploy around $1.5 billion of additional costs from non-strategic activities into these areas, over the medium term.

Regarding the CEO pay, the company noted that Elhedery, who took charge in September last year, will receive a base salary of 2.47 million pounds and a variable component of 2.89 million pounds. In 2023, his total pay was 3.29 million pounds including fixed and variable Components.

Noel Quinn, who retired as Group CEO and as an executive Director of the Board on September 2, was paid 9.16 million pounds in 2024.

In London, HSBC shares were losing around 1.1 percent to trade at 888.40 pence.