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HSBC Holdings PLC on Tuesday reported a drop in profit for the first quarter and announced a new share buyback programme while slashing its dividend. The London-based bank said pretax profit fell 25% to $9.48 billion in the first quarter ended March 31 from $12.65 billion a year earlier. Diluted earnings per share fell 28% to $0.39 from $0.54. Revenue declined 15% to $17.65 billion from $20.75 billion while net interest income was 4.0% lower at $8.30 billion, down from $8.65 billion. The net interest margin decreased by 4 basis points to 1.59% from 1.63%. HSBC cut its quarterly dividend by 68% to $0.10 per share from $0.31 but announced plans to launch a $3.00 billion share buyback. The buyback will begin following the bank’s annual general meeting on May 2 and be completed before its 2025 interim results announcement. Total assets stood at $3.054 trillion on March 31. This represents a 1.8% year-on-year increase from $3.000 trillion and a 1.2% increase from $3.017 trillion at December 31. Cash and balances at central banks decreased by 4.9% to $254.66 billion from $267.67 billion at December 31. Looking ahead, HSBC said it expects muted demand for lending in 2025 due to economic uncertainty driven by US protectionism. ‘However, over the medium to long term we continue to expect mid-single digit percentage growth for year-on-year customer lending balances. We continue to expect double-digit percentage average annual growth in fee and other income in Wealth over the medium term,’ HSBC commented. HSBC shares closed 0.2% higher at 835.30 pence each in London on Monday, while shares closed up 0.6% at $56.34 each in New York. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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