HONG KONG - HSBC reported a 6.6 percent rise in annual profit on Wednesday, beating market expectations, as income withstood the impact of falling interest rates during a year in which sweeping restructuring pushed up costs.

The London-based bank reported profit before tax for 2024 of $32.3 billion. That compared with $30.3 billion a year earlier and the $31.7 billion average of analyst estimates compiled by the bank.

The Asia-focused bank also announced a new $2 billion share buyback which it plans to complete before next earnings in May.

READ MORE: FT: HSBC to unveil $1.5 billion of annual cost savings on Feb 19

The bank said it aimed to generate about $300 million of cost reductions in 2025, with a commitment to an annualized reduction of $1.5 billion in cost base expected by the end of 2026.

HSBC said it was aiming for a performance target of a mid-teens return on average tangible equity for each of the three years from 2025 to 2027, while noting the outlook for interest rates remains volatile and uncertain in the medium term.

READ MORE: HSBC acquitted on charges of violating Korea short selling rules

The results come as CEO Georges Elhedery has embarked on costly restructuring just the outlook for lending revenue is muddied by divergence in central bank interest rate policies, with the euro zone having room to cut rates, the US holding steady and Japan expected to raise.