HSBC is expecting double-digit percentage average annual growth in fee and other income in its wealth business over the medium term.

Its Annual Results 2024 revealed that the wealth and personal banking part of the business posted a pre-tax profit on a constant currency basis of $12.2bn, a 37.7 per cent year-on-year increase.

HSBC’s wealth and personal banking arm had net operating income of $27.3bn last year, a $1.4bn increase from 2023, while its total operating costs increased to $15.2bn.

The bank recently announced a restructuring of its business into four units, including the creation of a new international wealth and premier banking division.

In 2024, its wealth business revenue increased by 18 per cent, including a 21 per cent increase in fee and other income.

“Our strong 2024 performance provides firm financial foundations upon which to build for the future, as we prioritise delivering sustainable strategic growth and the best outcomes for our customers,” said HSBC group CEO, Georges Elhedery.

“Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy. We are creating a simple, more agile, focused bank built on our core strengths.

“We continue to take deliberate and decisive steps. This includes creating four complementary, clearly differentiated businesses, aligning our structure to our strategy and reshaping our portfolio at pace and with purpose.

“I have put in place a smaller, core team of exceptionally talented leaders driven by a growth orientated mindset and a firm focus on dynamically managing our costs and capital. We are embedding this approach across the organisation to ensure we are continually focused on these two important principles.

“Each targeted action we are taking is designed to unlock HSBC’s full potential. We look to the future with confidence and clarity of purpose.”

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