HSBC reported a record annual profit that nonetheless came in below analysts' forecasts as the income boost from higher interests rates was offset by a hefty US$3 billion charge from its stake in a Chinese bank.

HSBC on Wednesday reported a pre-tax profit of US$30.3 billion for 2023, up 78 percent from US$17.5 billion a year earlier.

The results were worse than the US$34.1 billion mean average estimate of brokers compiled by HSBC.

Full-year net profit rose almost 60 percent to US$22.4 billion.

HSBC said the profits included a "favourable year-on-year impact" of US$2.5 billion due to the sale of its French retail banking operations, as well as a US$1.6 billion provisional gain recognised on its acquisition of Silicon Valley Bank UK.

The profits were partly offset by an impairment charge related to the investment of its associate, Bank of Communications.

The banking giant also announced further share buybacks.

It said it would initiate a share buyback of up to US$2 billion, following the announcement last year of three share buybacks totalling US$7 billion.

"This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment," chief executive Noel Quinn said.

The British lender announced a fourth interim dividend of US$0.31 per share, resulting in a total for 2023 of US$0.61 per share.

It also said it would consider a special dividend of US$0.21 per share in the first half of 2024 once its Canada disposal is complete.

HSBC said it remains cautious for the loan growth outlook in the first half of 2024, against a slowing economic growth in many economies where inflation persisted.

Subsidiary Hang Seng Bank posted a 58 percent increase in net profit to HK$17.8 billion.

It announced a fourth interim dividend of HK$3.2. (AFP/Reuters)