In This Article:
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Profit Before Tax: Up 11% for the first quarter, excluding notable items.
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Return on Tangible Equity: Annualized 18.4%, excluding notable items.
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Net New Invested Assets: $22 billion, with $16 billion in Asia.
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New-to-Bank Customers: 300,000 in Hong Kong.
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Revenue: $17.7 billion, up $1.1 billion from the previous year, excluding notable items.
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Share Buyback: Up to $3 billion announced.
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Interim Dividend: $0.10 per share.
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Expected Banking NII: Around $42 billion in 2025.
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Wholesale Transaction Banking: Up 13% year-on-year.
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First Quarter ECL Charge: $0.9 billion, including a $150 million provision for economic uncertainty.
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CET1 Ratio: 14.7%.
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Loan Balances: Broadly stable quarter-on-quarter.
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Deposits: Up 6% year-on-year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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HSBC Holdings PLC (NYSE:HSBC) reported a strong first quarter with profit before tax up 11% and an annualized return on tangible equity of 18.4%, excluding notable items.
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The company attracted net new invested assets of $22 billion and 300,000 new-to-bank customers in Hong Kong, marking its fifth consecutive quarter of double-digit growth in wealth.
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HSBC Holdings PLC (NYSE:HSBC) announced a share buyback of up to $3 billion and a $0.10 per share interim dividend, reflecting a focus on capital return to investors.
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The bank's balance sheet remains strong with deposit surpluses in every major currency across all geographies, providing a steady recurring income stream.
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HSBC Holdings PLC (NYSE:HSBC) is on track to deliver cost actions set out in February, including simplification-related cost savings and strategic cost reallocations.
Negative Points
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The external macroeconomic environment is less favorable and more uncertain, with trade policy uncertainty dampening business confidence and constraining investment.
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The bank's consensus downside scenario models a slowdown in global trade and GDP growth due to increased tariffs, potentially leading to incremental ECLs of $0.5 billion.
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Loan growth is expected to remain muted in 2025 due to macroeconomic uncertainty delaying decision-making and CapEx investments.
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The reclassification of the retained French home loan portfolio led to a $1.3 billion pretax loss in the quarter, impacting the CET1 ratio by approximately 0.2 percentage points.
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The bank faces potential dilution from BoCom's share issuance, with an expected accounting impact dilution loss of between $1.2 billion and $1.6 billion.