The HSBC Holding logo is displayed on a smartphone with HSBC visible in the background in this photo illustration taken in Brussels, Belgium on February 20, 2024.
Jonathan Raa | Nurphoto | Getty Images
HSBC beat expectations in its first-quarter earnings report on Tuesday.
Revenue came in at $20.8 billion, up 0.3% from the same period a year ago and compared to the average LSEG forecast of about $16.94 billion.
Pre-tax profit for the January to March period was $12.7 billion, down 2% from a year ago when pre-tax profit came in at $12.88 billion. Still, that number beat the $12.61 billion forecast from analyst estimates compiled by the bank.
Profit after tax fell to $10.84 billion – lower than 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. share, as well as a special dividend of 21 cents per stock.
Noel Quinn retires
The company also announced the retirement of Group CEO Noel Quinn, who has been in this position for almost five years.
“The board would like to pay tribute to Noel’s management 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,” says group chairman Mark. Tucker.
“During his tenure, HSBC has delivered record profits and the strongest returns for over a decade,” said Aileen Taylor, group secretary and chief governance officer at HSBC.
Quinn will remain as CEO as the bank begins the process of searching for his successor. HSBC said he has agreed to remain available until the end of his 12-month notice period – which ends on April 30, 2025 – to support the transition.
Here are the other highlights from the bank’s first quarter financial report card:
- Net interest margina measure of lending profitability, fell to 1.63% – compared to 1.69% a year ago.
- Tier 1 capital share — which measures the bank’s capital relative to its assets — was 15.2% compared to 14.8% in the fourth quarter of 2023.
- Basic earnings per stock came in at $0.54, slightly higher than $0.52 in the same period a year ago.
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