Banking giant HSBC has announced pre-tax profits rose by 78% – fuelled largely due to the high interest rates.

Its pre-tax figures show profit rose to £23bn ($30.3) in 2023, up from £13.8bn ($17.5) in 2022. It comes as banks across the world rose interest rates to help curb rising prices over the last 18 months.

HSBC’s announcement comes just a week after rival NatWest recorded its highest annual profit since the 2007 global financial crisis.

HSBC however did miss forecasts due to an impairment from its stake in Chinese bank, the Bank of Communications.

HSBC Group chief executive Noel Quinn said: “Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008, three share buy-backs last year totalling seven billion and a further share buy-back of up to two billion dollars.

“This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.

Mr Quinn added: “We have a strong platform for growth with the opportunities that exist within our two home markets and across our international wholesale, market-leading transaction banking, and wealth management businesses. We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024.”