Georges Elhedery, the newly appointed chief executive of HSBC, revealed that the bank is on the verge of completing its significant transformation aimed at reshaping it into a simpler and more agile institution suited for the rapidly changing financial landscape. Even though HSBC experienced a 7% decline in its pre-tax profits, largely attributed to $4.9 billion in one-off charges, the results still exceeded analyst expectations, indicating resilience in the bank's performance overall.

The bank's pre-tax profit for the last year stands at $29.9 billion, which, although lower than the previous year, is approximately $1 billion higher than what market analysts predicted. HSBC has set an ambitious new target for return on tangible equity, raising it to 17% or better by 2028, which underscores its commitment to improving profitability and shareholder returns. This change is a significant upward adjustment from its previous mid-teens target for the current three-year period ending in 2027.

Following the announcement, HSBC's shares listed in Hong Kong saw a 2.5% increase, reflecting investor confidence in the bank's strategic adjustments and future profitability. The major charges incurred during the year include a notable $2.1 billion write-off related to its investment in China's Bank of Communications, highlighting the challenges posed by the economic situation in China. Overall, Elhedery's remarks about the overhaul coming to a conclusion suggest a turnaround strategy that, despite recent financial setbacks, aims to position HSBC for sustainable growth in the future.