HSBC reports pre-tax profit of $5.2 billion in Q4 2022

London-based banking firm, HSBC reported on Tuesday its profit before tax reaching $5.2 billion during the last three months of 2022, which is more than 90 percent of the year before.

As a result of selling its French retail banking operations, its pre-tax profit for the entire year had a fall of $1.4 billion. The firm is also in the process of selling its business in Canada, BBC reported. The bank is planning to use the money raised from that sale to make payouts to shareholders, once the deal is completed.

“2022 was another good year for HSBC, we are on track to deliver higher returns in 2023,” chief executive Noel Quinn said.

HSBC has been selling businesses as it faces pressure from its biggest shareholder, the Chinese insurance giant Ping An, who has been publicly calling for HSBC to split off its business in Asia to increase profits since last year.

HSBC has also been having employee lay-offs to help cut costs, the firm had plans to close 114 branches in the UK in November, since the number of customers using them have fallen during the pandemic.

“There will be no easing off at all on costs,” said Quinn on Tuesday, hinting at more upcoming job cuts.

The fir, is considering up to $300 million additional costs for severance in 2023, added Quinn.

In June 2021, the firm agreed to sell its French retail bank, ending its long struggle to offload the business as it focuses on Asia. HSBC is expected to take a $2.4 billion hit to its profits as a result.