Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 51

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 51
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 (2023: $3,774m ). This followed a review of our performance against financial and non- financial metrics set out in the Group risk framework. Our highest performers received the largest increases in variable pay compared with the previous year. Variable pay pool ($m)

2024 2023 For details of how the Group Remuneration Committee sets the pool, see page 313 . Supporting colleagues to grow In our employee Snapshot survey, 78% of respondents said they believe HSBC genuinely cares about their well-being, a record high. We have been ranked number one for workplace mental health for the third year running in the Global CCLA Corporate Mental Health Benchmark 2024. We have prioritised supporting colleagues to work flexibly, balancing customer needs, social connection and individual flexibility.

| 24 | HSBC Holdings plcAnnual Report on Form 20-F |

Strategic Report

Financial overview In assessing the Group’s financial performance, management uses a range of financial measures that focus on the delivery of sustainable returns for our shareholders and maintaining our financial strength.

Executive summary We delivered a strong performance in 2024 with reported profit before tax of $32.3bn , up $2.0bn or 6% compared with 2023 . Our financial performance demonstrates the progress against our strategic priorities. In 2024, we achieved a return on average tangible equity (‘RoTE’) of 14.6% and a RoTE excluding notable items of 16.0% . We have now further extended our mid-teens RoTE target in each of the three years from 2025 to 2027, excluding notable items. This section sets out our key Group financial targets and the progress we made towards these in 2024, and our expectations for 2025 and beyond. We also include a more detailed table covering further key financial metrics that we consider insightful for understanding the Group’s performance. The Group financial results that follow provide more detailed insight into the performance that has driven the outcomes of our financial targets. It covers income statement performance on both a reported and constant currency basis, and the main factors impacting the strength of our balance sheet, capital and liquidity position.

Group financial targets Return on average tangible equity excluding notable items 16.0 % (2023: 16.2 %) In 2024, RoTE was 14.6% , in line with 2023. For the purposes of measuring performance against our Group target, we adjust RoTE to exclude notable items. From 1 January 202