HSBC Holdings' profit after tax rose 1.8 percent to about $25 billion in 2024, compared with the previous year, as the bank navigated portfolio reshaping, cost management and targeted investments under Group CEO Georges Elhedery.

Profit before tax rose by $2 billion to $32.3 billion, according to a statement published by HSBC yesterday.

On a constant currency basis, profit before tax excluding notable items increased by $1.4 billion to $34.1 billion, driven by revenue growth in wealth and personal banking and global banking and markets.

Elhedery said HSBC's performance in 2024 has provided "firm financial foundations upon which to build for the future" as the bank focuses on "delivering sustainable strategic growth and the best outcomes for our customers."

The London-headquartered lender also announced a share buy-back of up to $2 billion to be completed by the time it announced this year's first-quarter results.

HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.

Shortly after Elhedery became the CEO, the lender said it would simplify its structure and split into four parts: Hong Kong, UK, "corporate and institutional banking" plus "international wealth and premier banking".

The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting its European and US operations, news agency AFP reports.

HSBC expects to incur $1.8 billion in expenses by the end of next year related to an overhaul initiated by its new CEO to cut long-term costs and boost profits while navigating diverging interest rate policies and geopolitical turmoil.

Elhedery has moved to trim a layer of senior bankers, with hundreds of managers reportedly told to reapply for their jobs.

Cuts are underway in HSBC's markets division and wider layoffs at its investment bank will start as early as this week, Bloomberg News reported.

The lender said last month it would wind down parts of its investment banking operations in Europe, the United Kingdom and the Americas.

Elhedery said on Wednesday that his initiatives included "a comprehensive transformation of (HSBC) operations, modernising our infrastructure, and investing in technology such as AI, generative AI, data and analytics".

The lender considers both Britain and Hong Kong its "home markets", though the balancing act has come under pressure as relations sour between China and the West.

Elhedery's predecessor Noel Quinn in 2023 fended off a call for HSBC to spin off its Asia assets.

The board approved a fourth interim dividend of $0.36 per share, bringing the total for 2024 to $0.87 per share, including a special dividend of $0.21.

Regarding the outlook for 2025 and beyond, the bank is poised for continued profitability, targeting mid-teens return on tangible equity from 2025 to 2027.

The bank's strategic focus on leveraging its international network, enhancing digital transformation, and optimising cost efficiencies is expected to sustain its growth momentum.

"We look to the future with confidence and clarity of purpose," Elhedery said.