The HSBC Holding logo is displayed on a smartphone with HSBC in the background in this illustration taken in Brussels, Belgium, on February 20, 2024.
Jonathan Ra | norphoto | Getty Images
HSBC beat expectations in its first-quarter earnings report on Tuesday.
Revenue was $20.8 billion, up 0.3% from the same period last year and compared to LSEG's average forecast of $16.94 billion.
Pre-tax profits for the January-March period were $12.7 billion, down 2% from last year when pre-tax profits were $12.88 billion. However, this figure exceeded expectations of $12.61 billion from analyst estimates compiled by the bank.
Profit after tax income fell to $10.84 billion – less than the $11.03 billion seen in the first quarter of 2023.
HSBC, Europe's largest bank by assets, approved a first interim dividend of 10 cents per share, in addition to a special dividend of 21 cents per share.
Noel Quinn retires
The company also announced the retirement of Group CEO Noel Quinn, who has been in this position for nearly five years.
Group Chairman, Mark Mark, said: “The Board would like to pay tribute to Noel’s leadership of the company. Noel has had a long and distinguished career spanning 37 years at the Bank, and we are very grateful for his significant contribution to the Group over many years.” Tucker.
“During his tenure, HSBC achieved record profits and the strongest returns in more than a decade,” said Eileen Taylor, Group Secretary and Chief Governance Officer at HSBC.
Quinn will remain as Group CEO while the bank begins the search for his successor. HSBC said it had agreed to remain available until the end of the 12-month notice period – which expires on April 30, 2025 – to support the transition.
Below are other highlights from the bank’s first quarter financial report card:
Net interest margin, a measure of lending profitability, fell to 1.63% – compared to 1.69% a year ago. The Tier 1 common equity ratio – which measures the bank's capital in relation to its assets – was 15.2%, compared to 14.8% last year. Q4 2023. Basic earnings per share reached $0.54, slightly higher than $0.52 in the same period last year.
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