HSBC-CONTINENTAL-EUROPE
21.2.2024 12:06:25 CET | Business Wire | Press release
Regulatory News:
On 20 February 2024, HSBC Continental Europe’s Board of Directors reviewed the second half year results and approved the bank’s consolidated financial statements for 2023.
HSBC Continental Europe delivered a strong financial performance in 2023 with growth in wholesale banking revenues supported by the interest rate environment and increased client activity, moderate credit losses and continued cost discipline.
We completed the sale of our retail banking operations in France on 1 January 2024 and the acquisition of HSBC Private Bank (Luxembourg) SA on 2 November 2023. These transactions, in addition to the integration of HSBC Germany and HSBC Malta1 into HSBC Continental Europe, support our ambition to be the leading international wholesale bank in Europe servicing corporates and financial institutions, complemented by a targeted wealth and private banking offering.
2023 annual results
Profit after tax for the period was €908m in 2023, driven by the inclusion of profits from HSBC Germany and HSBC Malta, higher interest rates and increased client activity. This compared with a loss of €1,090m in 2022 that included impairments related to the sale of our retail banking operations in France and branch operations in Greece.
Net operating income before change in expected credit losses and other credit impairment charges2 was €3,833m, up from €2,002m in 2022, and included the full-year consolidation of the financial results of HSBC Germany and HSBC Malta. The increase was also driven by growth in net interest income in Commercial Banking and Global Banking which benefited from higher interest rates and higher deposit balances. Markets and Securities Services reported growth in revenues from Global Debt Markets and Securities Financing activities. Wealth and Personal Banking3 revenues also increased, reflecting higher net interest income and higher income from Life Insurance activities.
Change in expected credit losses and other credit impairment charges2 was a charge of €141m, compared with a charge of €124m in 2022. The cost of risk4, at 28bps, was moderate and the increase reflected specific provisions and the deterioration of forward-looking economic conditions.
Operating expenses2 were €2,217m, up from €1,660m in 2022. The increase was mainly driven by the full-year consolidation of the financial results of HSBC Germany and HSBC Malta, partly offset by lower infrastructure costs and lower contributions to the Single Resolution Fund.
Profit before tax2 was €1,475m compared to €218m in 2022.
The consolidated balance sheet of HSBC Continental Europe showed total assets of €283bn at 31 December 2023, compared to €279bn at 31 December 2022.
At 31 December 2023, HSBC Continental Europe reported an average liquidity coverage ratio (LCR)5 of 158% and an average net stable funding ratio (NSFR)6 of 141%. The bank’s fully loaded common equity tier 1 (CET1) ratio was 15.9% and the fully loaded total capital ratio was 20.8%. The fully loaded leverage ratio was 4.2%. The solvency ratio of the Life Insurance company was 287%7.
2023 second half results
In respect of continuing and discontinued operations8.
Loss before tax was €1,329m, compared to a loss before tax of €1,743m in the second half of 2022 that included an impairment of €1,998m in relation to the sale of the retail banking operations in France. This impairment was reversed in the first half of 2023 for an amount of €1,962m9 as the sale no longer met the criteria for the operations to be classified as held for sale. When the criteria were met again in the second half of 2023, an impairment of €1,842m was recognised, leading to the loss over the period. Excluding these impairments, the profit before tax was €513m, up from a profit before tax of €255m in the second half of 2022.
Net operating income before change in expected credit losses and other credit impairment charges was €76m and included the impairment related to the sale of the retail banking operations in France (€1,842m). This compared to revenues of €(557)m in the second half of 2022, including the previously recognised impairment related to the sale of the retail banking operations in France (€1,998m). Excluding these impairments, revenues were €1,918m, up from €1,441m in the second half of 2022. The increase was mainly driven by the full year consolidation of the financial results of HSBC Germany and HSBC Malta and the higher interest rates.
Change in expected credit losses and other credit impairment charges was a charge of €124m, in line with a charge of €123m in the second half of 2022.
Operating expenses were €1,281m, up from €1,063m in the second half of 2022. The increase was driven by the full year consolidation of the financial results of HSBC Germany and HSBC Malta.
Business disposals and changes of control
At 31 December 2023, in relation to the sale of the retail banking operations in France, €25.0bn in total assets, including €12.7bn of loans and advances to customers, and €23.7bn in total liabilities, including €20.1bn of customer accounts, were reclassified as held for sale in accordance with IFRS 5 and the overall impact of the held for sale classification was a gain of €143m in 2023. This comprised a reversal of the loss on sale of €2.0bn in the first half of 2023 as the sale became less certain, and a subsequent recognition of loss on sale of €1.8bn as we reclassified the retail banking operations in France as held for sale in the second half of 2023. The sale was completed on 1 January 2024.
HSBC Continental Europe acquired HSBC Private Bank (Luxembourg) SA on 2 November 2023 in response to the requirement for an Intermediate Parent Undertaking in line with EU Capital Requirements Directive for European Union banking entities ('CRD V').
The sale of HSBC Continental Europe’s branch operations in Greece to Pancreta Bank SA was completed on 28 July 2023 after close of business.
2023 results per business line10
Commercial Banking
Profit before tax was €762m, up from €358m in 2022, driven by growth in revenues in Global Payment Solutions and the full year consolidation of the financial results of HSBC Germany and HSBC Malta.
At 31 December 2023, customer loan balances of €24.8bn were stable compared to prior year and customer deposits of €39.4bn were up €4.5bn.
HSBC Continental Europe is a key partner for companies seeking to set up abroad and for foreign companies seeking to expand in Continental Europe.
Global Banking
Profit before tax was €321m, up from €175m in 2022, driven by higher revenues in Global Payment Solutions and the full year consolidation of the financial results of HSBC Germany, partly offset by higher provisions for expected credit losses.
At 31 December 2023, customer loan balances of €13.0bn were down €1.0bn and customer deposits of €25.9bn were up €5.5bn, mainly driven by business growth.
Global Banking in HSBC Continental Europe operates as an integral part of the HSBC Group’s Global Banking franchise in order to help its clients seize international growth opportunities, leveraging the HSBC Group's expertise and global network.
Markets and Securities Services
Profit before tax was €74m, up from €10m in 2022, mainly driven by higher revenues in Global Debt Markets and Securities Financing, as well as the full year consolidation of the financial results of HSBC Germany.
Customer deposits of €17.4bn at 31 December 2023 were down €3.1bn.
HSBC Continental Europe plays a key role as the HSBC Group's strategic platform for euro-denominated rates products, being a primary dealer in all European debt issuances, and has extended its product capacities, in particular to equities products involving European stocks.
Global Banking and Markets Other
Global Banking and Markets Other comprises activities that are outside of the perimeter of Markets and Securities Services and Global Banking. The main activity is Principal Investments which brings together HSBC Continental Europe’s core principal investing activities. The profit before tax was €9m, compared to a loss of €70m in 2022.
Wealth and Personal Banking
Profit before tax was €348m, up from a loss of €49m in 2022, driven by the full year consolidation of the financial results of HSBC Germany and HSBC Malta, higher interest rates and higher revenues from Insurance activities which benefited from more favourable market conditions.
Customer loan balances of €11.6bn at 31 December 2023 were up compared to €2.9bn in 2022, driven by the retention of €7.1bn of home loans by HSBC Continental Europe as per the revised terms of the sale of the retail banking operations in France, as well as the acquisition of HSBC Private Bank (Luxembourg) SA.
Customer deposits of €9.5bn at 31 December 2023 were up from €7.4bn in 2022, driven by the acquisition of HSBC Private Bank (Luxembourg) SA.
Corporate Centre
The Corporate Centre comprises operating income and expense items that are not allocated to the global businesses. The loss before tax was €39m, compared to a loss of €206m in 2022 that included the impairment recognised in relation to the sale of branch operations in Greece.
Post-balance sheet events
The sale of the retail banking operations in France was completed on 1 January 2024.
Appendix
The audit procedures relating to the accounts are ongoing.
Summary consolidated income statement
Retail banking operations in France have been re-classified as discontinued operations in accordance with IFRS 5 and accordingly the profit/loss of the discontinued operations has been reported separately in the income statement. In relation to the sale of the retail banking operations in France, HSBC Continental Europe retained a portfolio of €7.1bn of home loans which was originally part of the sale. As a result, and in compliance with IFRS 5, the 2022 comparative data of continuing and discontinued operations have been restated accordingly.
€m |
Year 2023 |
Year 2022 |
Continuing operations |
|
|
Net interest income |
2,534 |
1,130 |
Net fee income |
1,102 |
759 |
Net income/(expense) from financial instruments held for trading or managed on a fair value basis |
64 |
332 |
Other operating income/(expense) |
133 |
(219) |
Net operating income before change in expected credit losses and other credit impairment charges |
3,833 |
2,002 |
Change in expected credit losses and other credit impairment charges |
(141) |
(124) |
Total operating expenses |
(2,217) |
(1,660) |
Profit/(loss) before tax |
1,475 |
218 |
Tax expense |
(387) |
(33) |
Profit/(loss) after tax in respect of continuing operations |
1,088 |
185 |
Profit/(loss) after tax in respect of discontinued operations |
(180) |
(1,275) |
Profit/(loss) after tax for the period |
908 |
(1,090) |
Profit/(loss) attributable to shareholders of the parent company |
883 |
(1,092) |
Profit/(loss) attributable to non-controlling interests |
25 |
2 |
Profit/(loss) for the period by global business
|
Continuing Operations |
||||||||||||||
|
Wealth and Personal Banking |
Commercial Banking |
Markets and Securities Services |
Global Banking |
Global Banking and Markets Other |
Corporate Centre |
Total |
||||||||
|
|
|
|
|
|
|
|
||||||||
€m |
Year 2023 |
||||||||||||||
Net operating income before change in expected credit losses and other credit impairment charges |
730 |
1,444 |
803 |
764 |
33 |
59 |
3,833 |
||||||||
o/w net interest income/(expense) |
641 |
1,100 |
183 |
453 |
53 |
104 |
2,534 |
||||||||
Change in expected credit losses and other credit impairment charges |
9 |
(88) |
1 |
(63) |
(1) |
1 |
(141) |
||||||||
Total operating expenses |
(391) |
(594) |
(730) |
(380) |
(23) |
(99) |
(2,217) |
||||||||
Profit/(loss) before tax |
348 |
762 |
74 |
321 |
9 |
(39) |
1,475 |
||||||||
|
|
||||||||||||||
Year 2022 |
|||||||||||||||
Net operating income before change in expected credit losses and other credit impairment charges |
217 |
906 |
370 |
484 |
27 |
(2) |
2,002 |
||||||||
o/w net interest income/(expense) |
247 |
564 |
(18) |
243 |
(41) |
135 |
1,130 |
||||||||
Change in expected credit losses and other credit impairment charges |
3 |
(86) |
(1) |
(39) |
— |
(1) |
(124) |
||||||||
Total operating expenses |
(269) |
(462) |
(359) |
(270) |
(97) |
(203) |
(1,660) |
||||||||
Profit/(loss) before tax |
(49) |
358 |
10 |
175 |
(70) |
(206) |
218 |
||||||||
Notable items
On 1 January 2023, HSBC Continental Europe updated its financial reporting framework to no longer report ‘adjusted’ results, which exclude the impact of significant items. ‘Notable items’, which are components of our income statement that management considers as outside the normal course of business and generally non-recurring in nature, are now separately disclosed.
|
Continuing Operations |
|
€m |
Year 2023 |
Year 2022 |
Notable items – Revenue |
— |
(118) |
– Disposals, acquisitions and investment |
— |
(106) |
– Changes in fair value of financial instruments |
— |
7 |
– Restructuring and other related costs |
— |
(19) |
Notable items – Operating expenses |
(8) |
(259) |
– Disposals, acquisitions and investment |
(28) |
(9) |
– Impairment of non-financial items |
— |
4 |
– Restructuring and other related costs |
20 |
(254) |
Summary of consolidated income statement – prior to classification of retail banking operations in France as discontinued operations in accordance with IFRS 5
|
Half year to |
|
Year |
||||
€m |
31-Dec-2023 |
|
31-Dec-2022 |
2023 |
|
2022 |
|
Net interest income |
1,314 |
|
634 |
|
2,483 |
|
1,190 |
Net fee income |
612 |
|
477 |
|
1,291 |
|
964 |
Net income/(expense) from financial instruments held for trading or managed on a fair value basis |
2 |
|
123 |
|
65 |
|
334 |
Other operating income/(expense) |
(1,852) |
|
(1,791) |
|
188 |
|
(2,016) |
Net operating income before change in expected credit losses and other credit impairment charges |
76 |
|
(557) |
|
4,027 |
|
472 |
Change in expected credit losses and other credit impairment charges |
(124) |
|
(123) |
|
(137) |
|
(123) |
Total operating expenses |
(1,281) |
|
(1,063) |
|
(2,632) |
|
(2,038) |
Profit/(loss) before tax |
(1,329) |
|
(1,743) |
|
1,258 |
|
(1,689) |
Tax expense |
293 |
|
622 |
|
(350) |
|
599 |
Profit/(loss) for the period |
(1,036) |
|
(1,121) |
|
908 |
|
(1,090) |
Profit/(loss) attributable to shareholders of the parent company |
(1,050) |
|
(1,123) |
|
883 |
|
(1,092) |
Profit/(loss) attributable to non-controlling interests |
14 |
|
2 |
|
25 |
|
2 |
Accounting policy for classifying non-current assets or disposal groups as ‘held for sale’
HSBC Continental Europe classifies non-current assets or disposal groups (including assets and liabilities) as held for sale when their carrying amounts will be recovered principally through sale rather than through continuing use. To be classified as held for sale, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups, and the sale must be highly probable.
At 31 December 2023, HSBC Continental Europe judged that the sale of its retail banking operations in France was highly probable to complete on 1 January 2024. As such, and in accordance with IFRS 5, the disposal groups were classified as held for sale and re-measured at the lower of the carrying amount and fair value less costs to sell.
IFRS 17 ‘Insurance Contracts’
On 1 January 2023, HSBC Continental Europe adopted IFRS 17 ‘Insurance Contracts’. As required by the standard, the bank applied the requirements retrospectively with comparative data previously published under IFRS 4 ‘Insurance Contracts’ restated from 1 January 2022, the transition date. The impact of the transition in 2022 was a reduction of €253m on the revenue and a reduction of €153m to profit before tax.
HSBC Continental Europe
Headquartered in Paris, HSBC Continental Europe is an indirectly held subsidiary of HSBC Holdings plc. HSBC Continental Europe includes, in addition to its banking, insurance and asset management activities based in France, the business activities of 10 European branches (in Belgium, Czech Republic, Germany, Ireland, Italy, Luxembourg, Netherlands, Poland, Spain and Sweden) and two bank subsidiaries in Continental Europe (in Luxembourg and Malta). HSBC Continental Europe’s mission is to serve both customers in Continental Europe for their needs worldwide and customers in other Group countries for their needs in Continental Europe.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,039bn at 31 December 2023, HSBC is one of the world’s largest banking and financial services organisations.
1 Acquired in November 2022
2 In respect of continuing operations in accordance with IFRS 5 (see appendix)
3 In respect of continuing operations, Wealth and Personal Banking is mainly composed of the Life Insurance subsidiaries in France and Malta, the Asset Management subsidiaries in France, Germany and Malta, the retail banking activities in Malta and the Private Banking subsidiary in Luxembourg
4 Cost of risk divided by customer loans outstanding at the end of the period
5 Computed in respect of the EU Delegated act
6 Computed in respect of CRR II (Regulation EU 2019/876)
7 LCR, NSFR and the solvency ratio of the Life Insurance company are unaudited
8 See appendix
9 This amount excludes the reversal of impairment in the first half of 2023 for €19m related to non-financial assets which were impaired prior to the held for sale classification in 2022
10 In respect of continuing operations in accordance with IFRS 5 (see appendix)
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221272190/en/
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
SBC Medical Group Holdings Reports Second Quarter 2026 Financial Results13.8.2026 12:30:00 CEST | Press release
Restructuring Complete, Growth Reaccelerates: Q2 Revenue Up 13%, Net Income Attributable to SBC Medical Up 335%, Adjusted EBITDA1 Up 32% Year-over-Year. AI-Enabled Service Enhancements Drive Successful Fee Increases, Positioning the Business for Accelerated Network Expansion SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical” or the “Company”), a Medical Services Organization (MSO) providing management support across a wide range of healthcare fields to medical institutions in Japan and abroad, today announced its consolidated financial results for the second quarter of fiscal year 2026 (the three months ended June 30, 2026) and the first half of fiscal year 2026 (the six months ended June 30, 2026). Second Quarter 2026 Financial Highlights Total revenues were $49 million, an increase of 13% year-over-year. Net income attributable to SBC Medical was $11 million, an increase of 335% year-over-year. Net income margin was 22%, an increase of 16 percentage points year-over
Unimed Expands Maritime Healthcare Platform with Growing Adoption of Telemed Plus13.8.2026 11:00:00 CEST | Press release
New agreement with Bahri builds on longstanding relationship and underscores growing demand for integrated telemedicine and crew healthcare solutions Universal Maritime Solutions (“Unimed” or “the Company”), a leading provider of maritime healthcare, medical supply, and crew wellbeing solutions and a portfolio company of ZCG Private Equity, the private equity fund management platform of Z Capital Group, LLC (“ZCG”), today announced that Bahri, one of the Middle East’s leading maritime operators, has expanded its relationship with Unimed by enrolling in its Telemed Plus premium service. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260813787745/en/ The agreement builds on a longstanding relationship between the companies through Unimed’s MedScale medical supply and medical chest management program and marks another important milestone in the continued rollout of Unimed’s Telemed Plus platform, launched in 2024. The expansion
The Fairest of Them All: Klarna Supercharges Memberships, Removing Fees, Boosting Cashback and Increasing Annual Value to as Much as €6,00013.8.2026 09:09:00 CEST | Press release
Cashback rates increased and extended to all purchases with Klarna on Plus and abovePlans now include as many as 23 standout subscriptions, including recent additions NordVPN, Livi, foodora and Voi* Klarna, the global digital bank and flexible payments provider, today unveiled its most significant membership upgrade yet. The revamped tiers deliver more cashback, up to €6,000 worth of perks, and remove service fees — built so a Klarna membership pays for itself, and then some. Klarna's improved membership lineup spans four tiers, each built for a different kind of member but all embodying a flexible ethos: pay only for the Klarna that fits your life. Pay later is free at partner stores, or get broader fee-free access with Everywhere (formerly Core), or climb to Plus, Premium or Max for richer cashback rewards, bigger, everyday perks and a growing set of subscriptions and protections. A Klarna membership is a fairer alternative to a credit card by design, and one of the biggest differenc
Interactive Brokers Adds Access to the Bucharest Stock Exchange, Offering Access to One of Europe's Strongest-Performing Markets of 202513.8.2026 09:00:00 CEST | Press release
Eligible clients can now trade Romanian stocks on the Bucharest Stock Exchange, alongside products from over 170 global markets, on one platform Interactive Brokers (Nasdaq: IBKR), an automated global broker, today announced access to the Bucharest Stock Exchange (BVB). This expansion offers access to one of Europe’s strongest-performing emerging markets of 2025, expanding diversification opportunities for IBKR clients alongside over 170 other global exchanges on a single, advanced platform. Romania was elevated to MSCI’s Advanced Frontier Market status while the BET index reached record highs in 2025 and continued its growth through the first half of 2026. With this integration, IBKR clients can access Romanian equities through the same platform they use for markets worldwide, making it easier to incorporate Romanian listed companies into their global investment strategies. “Adding the Bucharest Stock Exchange expands the choices available to our clients and reinforces our commitment
Lenovo Group: Q1 Financial Results 2026/2713.8.2026 06:16:00 CEST | Press release
Lenovo delivers strongest quarter in Group history: Hybrid AI strategy powers growth momentum Lenovo GroupLimited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (‘the Group’), today reported first quarter results for fiscal year 2026/27, marking the highest quarterly revenue growth in the past five years and the strongest quarter in the Group’s history. During the quarter, overall Group revenue reached an all-time quarterly high of US$26.9 billion, up 43% year-on-year, with all business groups delivering record first-fiscal-quarter revenue and operating profit. Adjusted net income[1]was up 176% year-on-year to US$1.1 billion, surpassing the US$1 billion milestone for the first time ever, with adjusted net margin improvements of almost two percentage points year-on-year supported by higher revenue scale and continued efficiency gains. AI-related revenue[2] grew 60% year-on-year to US$9.3 billion, accounting for 35% of total Group revenue in Q1. The Group continues to invest in
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom