HSBC Chief Topples After Record British Profits

HSBC beats expectations in first quarter earnings; CEO Noel Quinn to retire

HSBC, a leading global bank, has released its financial results for the first quarter of 2024, delivering mixed outcomes.

Revenue exceeded analysts’ expectations, increasing by 3% to $20.8 billion compared to the same period last year.

This positive performance is primarily attributed to strong growth in net interest income.

However, pretax profit witnessed a modest 2% decline to $12.65 billion due to an increase in operating expenses.

Nonetheless, this figure still surpassed market estimates of $12.61 billion.

Despite the decline in pretax profit, HSBC’s profit after tax income decreased slightly to $10.84 billion, reflecting reduced other income and an increase in the bank’s effective tax rate.

Furthermore, the bank has declared a first interim dividend of 10 cents per share and a special dividend of 21 cents per share, a move welcomed by investors.

One significant announcement in the report is the departure of Group Chief Executive Officer Noel Quinn, who has held the position for almost five years.

The board has expressed gratitude for Quinn’s contributions and highlighted the company’s strong performance under his leadership.

Despite the leadership change, HSBC anticipates a generally positive outlook for 2024.

The bank maintains its guidance for a return on average tangible equity in the mid-teens, with banking net interest income expected to exceed $41 billion.

Overall, HSBC’s first-quarter results present a nuanced picture with revenue growth but some moderation in profitability.

The company’s commitment to delivering shareholder value through dividends and its positive outlook for the year ahead are notable aspects.