HSBC Q1 Results Down, Confirms Outlook; Plans Up To $3 Bln Buyback

HSBC Holdings

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(RTTNews) - British lending major HSBC Holdings Plc (HSBA.L, HSBC) reported Tuesday lower profit and revenues in its first quarter.

Further, the Board has approved a first interim dividend for 2025 of $0.10 per share.

The company now intends to initiate a share buy-back of up to $3 billion, which is expected to commence shortly after annual general meeting on May 2 and to complete within the period before 2025 interim results announcement.

Looking ahead, the company continues to expect banking NII of around $42 billion in 2025.

The company still expects a mid-teens return on average tangible equity in each of the three years from 2025 to 2027 excluding notable items.

HSBC added, "Given current levels of uncertainty and market turmoil, we expect demand for lending to remain muted during 2025. However, over the medium to long term we continue to expect mid-single digit percentage growth for year-on-year customer lending balances. We continue to expect double-digit percentage average annual growth in fee and other income in Wealth over the medium term."

In its first quarter, profit before tax decreased to $9.48 billion from last year's $12.65 billion, primarily due to the non-recurrence of $3.7 billion in net impacts last year relating to the disposals of banking business in Canada and business in Argentina.

Profit after tax was $7.57 billion, lower than prior year's $10.84 billion.

Revenue decreased 15 percent to $17.65 billion from last year's $20.75 billion, mainly reflecting the impact of business disposals, notably in Canada and Argentina. Constant currency revenue excluding notable items rose 7 percent.

In the quarter, net interest income of $8.3 billion fell by $0.4 billion compared with the prior year. Net interest margin of 1.59 percent decreased by 4 basis points.

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