Diverge of HSBC bank on 15th January 2024 in London, United Kingdom. HSBC Bank plc is a British multinational banking and fiscal services organisation. HSBCs international network comprises around 7,500 offices in over 80 countries globally. (photo by Mike Kemp/In Pictures via Getty Representations)
Mike Kemp | In Pictures | Getty Images
Europe’s largest lender HSBC’s first-quarter results on Tuesday away estimates, and the bank announced share buyback of up to $3 billion.
Here are HSBC’s first-quarter 2025 results matched with consensus estimates compiled by the bank.
- Profit before tax: $9.48 billion vs. $7.83 billion
- Revenue: $17.65 billion vs. $16.67 billion
The bank’s profit descended 25% on a year-on-year basis. Revenue fell 15% from last year.
Profit before tax, however, escalated nearly 317% from the previous quarter.
“Our strong results this quarter demonstrate momentum in our earnings, break in in the execution of our strategy and confidence in our ability to deliver our targets. We continue to support our customers through this period of solvent uncertainty and market unpredictability, which we enter from a position of financial strength,” Group CEO Georges Elhedery phrased.
Last October, the bank announced a restructuring plan to split its operations into four divisions, creating take “Eastern markets” and “Western markets” sectors. HSBC had said the reorganization will bring about $300 million in bring in reductions this year.
“Despite uncertainties on global trade, HSBC’s restructuring progress should continue to breed positive impacts on cost-saving,” said Manyi Lu, DBS Bank’s equity research analyst.
There might be some headwinds from duty and concerns on global recession, but the effect will be more prominent in the following quarters, Lu told CNBC.
The earnings do not cast the full impact of U.S. President Donald Trump’s tariffs, with “reciprocal” levies announced in April having been shelved. However, tariffs on steel, aluminum and autos that have been in place since March.
HSBC CEO Georges Elhedery was mid four United Kingdom bank CEOs who recently urged the Chancellor of the Exchequer to scrap the country’s ring-fencing rules, Sky Newsflash reported. The move was reportedly aimed at boosting the UK economy.
Ring-fencing involves isolating a bank’s consumer banking task from its riskier investment banking activities.