29 April 2025
If you are covering HSBC’s latest results, please see the following comment from William Howlett, financials analyst at Quilter Cheviot:
HSBC’s results show a stronger-than-expected start to the year, with adjusted pre-tax profits rising 11% year-on-year and coming in 15% ahead of market forecasts. Revenue growth was solid across the business, particularly in wealth management and transaction banking, even as net interest income dipped slightly.
Although some of the headlines this morning have focused on wider global risks and cautious outlook comments, HSBC’s underlying numbers are reassuring. The bank estimates any potential impact from new tariffs would be small and manageable, and loan losses were in line with expectations, despite additional charges relating to a more negative economic outlook.
Underlying costs rose 3.5% compared to last year, largely due to ongoing investment in technology, but remained better than anticipated thanks to restructuring savings. Meanwhile, the bank’s core capital ratio – a key measure of financial strength known as the CET1 ratio – dipped slightly to 14.7% but remains comfortably within its target range.
Shareholder returns also continued, with a dividend and an additional $3 billion share buyback announced. Overall, despite some market nervousness, HSBC’s results paint a picture of a bank that is performing well operationally and managing risks carefully, even against a more uncertain global backdrop.
