HSBC posts pre-tax profit of $12.9b, with first quarterly dividend at $0.1 per share

Profits include a provisional gain of $1.5b from SVB Bank UK acquisition in March.

HSBC reported a profit before tax of $12.9b in Q1, or a $8.7b rise compared to profits in Q1 2022.

The profit included a $2.1b reversal of an impairment related to a planned sale of HSBC’s retail banking operations in France.

It also included a provisional gain of $1.5b on the acquisition of Silicon Valley Bank UK in March.

HSBC has announced a first quarterly dividend of $0.1 per share, its first since 2019.

It is also conducting a share buy back of up to $2b, according to CEO Noel Quinn.

“With the good momentum we have in our business, we expect to have substantial future distribution capacity for dividends and share buy-backs,” Quinn said.

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Revenue jumped 64% to $20.2b during the first three months of 2023, which HSBC attributed to higher net interest income as a result of interest rate rises.

Net interest margin is 1.69% higher, a 50 basis point increas from Q1 2022, and a 1 bp rise from Q4 2022.

Expected credit losses and other credit impairment charges (ECL) fell by $200m during the quarter, to $400m. 

Operating expenses of $7.6b were 7% of about $600m lower than in the first quarter of 2022.  The reduction was primarily due to lower restructuring and other  related costs following the completion of our cost-saving programme at the end of 2022, and ongoing cost discipline, HSBC said.