Restores dividend and launches $2 billion share buyback plan


HSBC, the largest European bank by assets, recorded net attributable profit of 10,327 million dollars (9,393 million euros) in the first three months of 2023, which is almost four times more than the result of 2,755 million dollars (2,506 million euros) recorded by the entity in the same period of the previous year.

The British bank explained that its quarterly accounts reflect the positive impact of the reversal of 2,100 million dollars (1,910 million euros) of an impairment related to the planned sale of its retail banking operations in France, as well as an interim gain of 1,500 million dollars (1,364 million euros) for the acquisition of SVB United Kingdom.

Likewise, HSBC highlighted the positive effect on its first quarter results of the increase in net interest income as a result of the rise in interest rates together with a reduction in operating expenses as a result of restructuring measures and cost savings .

Between January and March, the British entity, whose business is mainly concentrated in Asia, reached a turnover of 20,171 million dollars (18,347 million euros), 63.9% above the income of the entity a year earlier .

Specifically, HSBC’s net interest income increased by 38.4%, to 8,959 million dollars (8,149 million euros), while commission income decreased by 6.4%, to 3,004 million dollars (2,732 million of euros).

As of March 31, 2023, the CET1 highest quality core capital ratio increased to 14.7%, from 14.2% on December 31, 2022, while the liquidity coverage ratio (‘LCR’) was 132%.

“Our strong performance in the first quarter provides further proof that our strategy is working,” said HSBC CEO Noel Quinn.

“As a result, we have announced our first quarterly dividend since 2019 of $0.10 per share, as well as a share buyback of up to $2 billion,” the executive said, adding that the entity expects to have significant future distribution capacity. dividends and share repurchases.

Quinn also highlighted the opportunity to invest in SVB UK to accelerate the bank’s growth plans, noting that with its purchase the entity has access to more entrepreneurs in the technology and life sciences sectors that will create the businesses of tomorrow. “We believe they are a natural fit for HSBC and that we are uniquely positioned to take them global,” she added.