The HSBC Holding logo is displayed on a smartphone with HSBC visible in the background in this illustrative photo taken in Brussels, Belgium on February 20, 2024.
Jonathan Raa | Nuphoto | Getty Images
HSBC beat market expectations in its first quarter results report released on Tuesday and announced the surprise departure of group CEO Noel Quinn.
Revenue was $20.8 billion, up 3% from the same period last year and above LSEG’s median forecast of around $16.94 billion.
Pre-tax profit in the January-March period was $12.65 billion, down about 2% from a year ago, when pre-tax profit was $12.89 billions of dollars. This figure nevertheless exceeds the $12.61 billion estimated by analysts compiled by the bank.
Profit after tax decreased to $10.84 billion, lower than the $11.03 billion recorded 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 operations in Canada .
The company also announced the retirement of Quinn, who had held the position for nearly five years.
“The Board of Directors would like to pay tribute to Noel’s leadership within the Company. Noel has had a long and distinguished career of 37 years with the Bank and we are very grateful for his significant contribution to the Group over many years ” said the group’s president, Mark Tucker.
“During his tenure, HSBC delivered record profits and the highest returns in more than a decade,” said Aileen Taylor, group company secretary and HSBC director of governance.
Quinn will remain group CEO as the bank begins the process of searching for his successor. HSBC said it had 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:
- Net interest margina measure of loan profitability, declined to 1.63% — from 1.69% a year ago.
- Common Equity Tier 1 Capital Ratio — 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 share stood at $0.54, slightly higher than $0.52 for the same period a year ago.
HSBC also reiterated its outlook for 2024, saying it remains unchanged from February’s forecast.
The bank continues to target a return on average tangible equity “around 15%” for 2024, with net interest banking income of at least $41 billion, subject to global interest rate conditions.
HSBC said its CET1 capital ratio is expected to be within its medium-term target range of 14% to 14.5%, while its dividend payout ratio is expected to be 50% for 2024, excluding significant notable items and impacts. associates.
Correction: This story has been updated to accurately reflect that HSBC’s first quarter 2024 revenue was 3% higher than a year ago. This figure was incorrect due to an editing error.
