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Bumper bonuses at HSBC do not reflect China risk

Weakness in the region makes hefty payouts increasingly difficult to justify

Bankers’ bonuses in Asia have been plunging. But not for Noel Quinn. Total pay for the HSBC chief executive nearly doubled to £10.6mn ($13.4mn) in 2023. The Asia-focused lender also boosted its overall bonus pool despite reporting earnings that missed expectations on Wednesday. Weakness in China will make justifying those hefty payouts increasingly difficult.

Pre-tax profit rose 78 per cent to $30.3bn in 2023, missing analysts’ expectations. The bank reported a 14.6 per cent return on tangible equity in 2023, which also fell short of estimates at 17 per cent. The bank’s Hong Kong-listed shares dropped more than 3 per cent after the results.

HSBC’s payouts are bucking the trend, both in terms of its own results and the region. Total pay for senior bankers in Asia, excluding Japan, reportedly fell below the $1mn mark last year, to as low as $700,000, the weakest in nearly two decades. At HSBC, the bonus pool is up 12 per cent with payouts rising to $3.7bn last year.

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