The HSBC Holding logo is being displayed on a smartphone, with HSBC visible in the background, in this photo illustration taken in Brussels, Belgium on February 20, 2024.
Jonathan Rae Nurfoto | getty images
HSBC beat market expectations in its first-quarter earnings report on Tuesday and announced the surprise departure of group Chief Executive Noel Quinn.
Revenue came in at $20.8 billion, up 3% from the same period a year earlier and compared with the average LSEG forecast of about $16.94 billion.
Pre-tax profit in the January to March period stood at $12.65 billion, down about 2% from a year earlier, when pre-tax profit was $12.89 billion. Still, the figure beat estimates of $12.61 billion, according to analysts’ forecasts compiled by the bank.
Profit after tax income declined to $10.84 billion – down from the $11.03 billion seen in the first quarter of 2023.
HSBC, Europe’s largest bank by assets, has approved a first interim dividend of 10 cents per share as well as a special dividend of 21 cents per share following the completion of the sale of its banking business in Canada.
The company also announced the retirement of Quinn, who had held the position for nearly five years.
Group Chairman Mark said, “The Board wishes to pay tribute to Noel’s leadership of the Company. Noel has had a long and distinguished 37-year career at the Bank and we are very grateful for his significant contribution to the Group over many years.” Tucker.
“During his tenure, HSBC has delivered record profits and its strongest returns in more than a decade,” said Eileen Taylor, group company secretary and chief administration officer at HSBC.
Quinn will remain as Group CEO as the bank begins the process of finding his successor. HSBC said it has agreed to remain available until the end of its 12-month notice period – which ends on April 30, 2025 – to support the transition.
Here are other highlights from the bank’s first quarter financial report card:
- net interest marginLending, a measure of profitability, declined to 1.63% – from 1.69% a year earlier.
- Common Equity Tier 1 Ratio – which measures a bank’s capital relative to its assets – was 15.2%, compared with 14.8% in the fourth quarter of 2023.
- basic earnings per share Came in at $0.54, up slightly from $0.52 in the same period a year ago.
HSBC also reiterated its outlook for 2024 and said it was unchanged from February guidance.
Subject to global interest rate conditions, the Bank continues to target an average return on tangible equity “in the mid-teens” for 2024, with banking net interest income of at least $41 billion.
HSBC said its CET1 capital ratio is expected to be within the medium-term target range of 14% to 14.5%, while its dividend payout ratio, excluding significant items and related impacts, was targeted to be 50% for 2024 Is.
Correction: This story has been updated to accurately reflect that HSBC’s first-quarter revenue for 2024 was 3% higher than a year earlier. That figure was misstated due to an editing error.
