Guangzhou Daily (All Media Reporter Zhao Dongqin) On February 21, two major foreign-funded institutions, HSBC Holdings Limited ("HSBC Holdings") and Hang Seng Bank Limited ("Hang Seng Bank"), released their 2023 annual performance reports.

HSBC Holdings reported record profits in 2023, with revenue increasing by US$15.4 billion to US$66.1 billion, an increase of 30%.

Hang Seng Bank's full-year net interest income in 2023 was HK$32.3 billion and net profit was HK$17.85 billion.

  The reporter found that by combing the Chinese market, especially the Greater Bay Area, foreign-funded institutions have gained a lot in terms of annual performance in 2023.

Many foreign-funded institutions have expressed confidence in the resilience of China's economy and its mid- to long-term growth opportunities.

Focus on cross-border business in the Greater Bay Area

  Since February, many foreign-funded institutions have successively disclosed their 2023 annual performance reports.

Following DBS Bank's performance report before the Spring Festival, on February 21, two major foreign institutions, HSBC Holdings and Hang Seng Bank, also disclosed their 2023 "report card."

  HSBC Holdings’ 2023 annual performance report shows that last year’s pre-tax profit increased by US$13.3 billion to US$30.3 billion, after-tax profit increased by US$8.3 billion to US$24.6 billion, and revenue increased by US$15.4 billion to US$66.1 billion, an increase of 30%, of which net Interest income increased $5.4 billion and non-interest income increased $10.0 billion.

The board of directors of HSBC Holdings has approved the payment of a fourth dividend of US$0.31 per share, with a total dividend of US$0.61 per share in 2023.

  Hang Seng Bank's 2023 annual performance report shows that profit before tax increased by 57% year-on-year to HK$20.1 billion.

Return on shareholders' equity increased by 4.1 percentage points to 11.3%, and earnings per share increased by 62% to HK$8.97.

Net interest income increased by 26% compared with last year.

The bank's net interest margin expanded 55 basis points to 2.30%.

  The reporter found out that in 2023, many foreign financial institutions have accelerated the pace of expanding their business in China.

  Public information shows that in 2023, HSBC Group will continue to promote regional diversification of profits in multiple markets, including seizing rapidly growing business opportunities in markets such as mainland China, India, Singapore, the United Arab Emirates, Saudi Arabia and Mexico.

Qi Yaonian, CEO of HSBC Group, said, "Last year, businesses in Mainland China (own business), India and Singapore all contributed more than US$1 billion in profits to the group, which once again proves that relevant business strategies are effective."

  For Hang Seng Bank, after exploration in 2023, the strategy of increasing non-interest income and diversifying development of wealth management business has begun to bear fruit.

It is worth mentioning that the bank’s new accounts opened by non-Hong Kong residents increased by 342% year-on-year.

Hang Seng Bank Executive Director and Chief Executive Officer Shi Yingyan said that the main reason is that the bank is focusing on expanding its business in the Greater Bay Area and opening a new cross-border wealth management center to meet customers' growing demand for cross-border financial management and launching new investments in the region. product.

Foreign investors are optimistic about China's economic prospects

  Since 2023, foreign financial institutions have continued to increase their investment in the Chinese market and are optimistic about China's economic prospects in 2024.

The New Year's Economic Outlook released by HSBC Global Research shows that China's economic growth rate is expected to reach 4.9% in 2024, and its steady recovery will inject impetus into economic growth in Asia and the world.

"We are confident in the resilience of China's economy and its mid- to long-term growth opportunities," Qi Yaonian said.

  Shi Yingyin said that regardless of the speed of economic recovery, the bank is ready to maintain business performance and continue to support the development of mainland China, especially the Greater Bay Area.

It is reported that, including the latest cross-border wealth management center opened in January 2024, Hang Seng Bank has deployed 7 cross-border wealth management centers in the Greater Bay Area.

  It is worth mentioning that with the implementation of Cross-border Wealth Management Connect 2.0, major foreign banks have responded positively and cross-border Wealth Management Connect products, especially the "Southbound Connect" products, have been rapidly expanding.

Among them, Standard Chartered Bank announced that it will increase the number of eligible Southbound Connect fund products to more than 140, covering funds with low, medium and high risk and that mainly invest in the stock market.

Hang Seng Bank's "Southbound Connect" financial products will increase to more than 220 types, covering funds, bonds, RMB, Hong Kong dollars and foreign currency deposits and other products in different assets and markets.