HONG KONG, May 2 — Global banking giant HSBC announced today a US$9-billion (RM40.1 billion) jump in pre-tax profits in the first quarter of 2023, projecting strong earnings for the rest of the year.
The London-headquartered bank reported pre-tax profits of US$12.9 billion for the opening quarter, up from US$3.4 billion in the same period last year.
Revenue leapt 64 per cent to US$20.2 billion.
“Our strong first quarter performance provides further evidence that our strategy is working,” chief executive Noel Quinn said in a statement.
“Our profits were spread across our major geographies, and all three global businesses performed well as we continued to meet our customers’ needs through our internationally connected franchises.”
Quinn added that HSBC has also announced its “first quarterly dividend since 2019 of US$0.10 per share” and a share buy-back of up to US$2 billion.
Pressure has been mounting on HSBC since its largest shareholder, Chinese insurer Ping An, called for the bank to break up its business as part of a “strategic restructuring” to unlock shareholder value.
The company has urged its shareholders to vote down the proposal at its annual general meeting in Birmingham scheduled for May 5.
HSBC bought the UK arm of failed US lender Silicon Valley Bank for a nominal US$1.2 in a rescue deal in March.
Quinn said the acquisition fits in with the bank’s overall growth plans.
“We remain focused on continuing to improve our performance and maintaining tight cost discipline, but we also saw an opportunity to invest in SVB UK to accelerate our growth plans,” he said.
“We believe they’re a natural fit for HSBC, and that we’re uniquely placed to take them global.” — AFP
