HSBC reduces profit by 1.4% in the first quarter, to 9.5 billion

MADRID, 30 Abr.

HSBC reduces profit by 1.4% in the first quarter, to 9.5 billion


HSBC, the largest European bank by assets, registered an attributable net profit of 10,183 million dollars (9,500 million euros) in the first quarter of 2024, which represents a decline of 1.4% compared to the profits recorded in the same period of the previous year, as reported by the entity.

Between January and March, the British entity, but whose business is mainly concentrated in Asia, recorded an adverse impact of 720 million dollars (672 million euros) due to provisions to cover potential credit losses and other defaults, which represents an increase 66.6% compared to the 432 million dollars (403 million euros) in the first quarter of 2023.

For its part, HSBC's operating turnover in the first three months of the year reached 20,032 million dollars (18,690 million euros), 1.5% above the entity's income a year earlier.

Specifically, net interest income decreased by 3.4% year-on-year, to 8,653 million dollars (8,073 million euros), while commission income grew 4.7%, to 3,146 million dollars (2,935 million euros). euros).

In turn, HSBC's income from financial instruments for trading or managed at fair value grew by 31.5%, to 5,406 million dollars (5,043 million euros).

At the end of the first quarter, the ordinary capital ratio (CET1) increased by four tenths compared to the end of 2023, up to 15.2%, driven by capital generation and the net beneficial impact of strategic transactions on the equity ratio. CET1 and in risk weighted assets (RWA).

"I am pleased with our start to 2024. We completed the sale of our business in Canada and agreed to the sale of our business in Argentina, allowing us to focus on markets with higher value international opportunities," said Noel Quinn, CEO of HSBC.

HSBC's board of directors has approved a first interim dividend of $0.10 per share, which will be paid in June along with the extraordinary dividend of $0.21 approved after completing the sale of the banking business in Canada.

Likewise, after completing the buyback of 2,000 million dollars (1,866 million euros) announced in the 2023 results, the bank intends to initiate a share repurchase of up to 3,000 million dollars (2,799 million euros), with an estimated impact of 0.4 percentage points on the CET1 capital ratio and which will begin after the general meeting of shareholders in May.

Looking ahead to the year as a whole, the entity maintains its guidance and continues to aim for a return on average tangible capital ('RoTE'), excluding the impact of notable elements, of around 15% in 2024, with net bank interest income of at least 41,000 million dollars (38,254 million euros), depending on the evolution of interest rates worldwide.

Additionally, the bank has confirmed its intention to manage its CET1 capital ratio within the medium-term target range of 14% to 14.5%, with a target dividend payout ratio of 50% by 2024, excluding notable significant items. and related impacts.

On the other hand, the CEO of HSBC, Noel Quinn, has informed the board of directors of the largest European bank by assets of his intention to leave the position, which he held for almost five years, as reported by the entity.

"The group's chief executive, Noel Quinn, has informed the board of his intention to retire from the bank after almost five years in the role," HSBC confirmed in a statement.

Quinn, 63, will remain at HSBC as CEO while the bank's board completes the formal selection process for his successor from both internal and external candidates to ensure an orderly transition.

HSBC Chairman Mark Tucker has thanked Noel Quinn for his leadership since taking up the role in 2019, as well as his contribution to the entity since he joined in 1987.

"The bank is in a strong position as it enters the next phase of development and growth," Tucker said.

For his part, Noel Quinn stated that "after five intense years, now is the right time to achieve a better balance between my personal and business life."