HSBC Bank branch on January 15, 2024 in London, the United Kingdom. HSBC Bank PLC is an organization of British multinational financial and banking services. HSBCS International Network includes around 7,500 offices in 80 countries worldwide. (Photo of Mike Kemp/in pictures through Getty Images)
Mike kemp | In images | Getty images
The results of the first largest HSBC quarter in Europe on Tuesday exceeded estimates on the back of the solid performance of their wealth business, as well as the strength in its corporate and institutional banking segment.
The bank also announced the repurchase of shares of up to $ 3 billion that it intends to complete before its provisional results of 2025 are announced.
Here are the 2025 results of the first HSBC quarter compared to consensus estimates compiled by the bank.
- Profit before taxes: $ 9.48 billion compared to $ 7.83 billion
- Revenue: $ 17.65 billion compared to $ 16.67 billion
Bank’s gain before taxes decreased 25% in a basic year -on -year, while income fell 15% from last year.
The profits, however, were fired almost 317% compared to the previous quarter.
“Our strong results This quarter demonstrates impulse in our profits, discipline in the execution of our strategy and confidence in our ability to deliver our objectives.
However, the Bank warned about the uncertainty of uncertainty in the macroecomic climate, highlighting that protectionist commercial policies warnedly affected the feeling of consumers and businesses.
Last October, HSBC announced a restructuring plan to divide its operations into four divisions, creating separate sectors of “eastern markets” and “Western markets.” HSBC had said that reorganization will generate around $ 300 million in cost reductions this year.
The bank said Tuesday that he hopes that reorganization costs $ 1.8 billion in 2025 and 2026.
“Despite the uncertainties in Global Trade, HSBC’s restructuring progress should continue to provide positive impacts on cost savings,” said Manyi Lu, Capital Research Analyst of DBS Bank.
There may be some winds against the rate and concerns about the global recession, but the effect will be more prominent in the following quarters, Lu told CNBC.
The profits do not reflect the total impact of the rates of US President Donald Trump, with “reciprocal” taxes announced in April that were suspended. However, tariffs on steel, aluminum and cars that have been in place since March.
The HSBC CEO, Georges Elherery, was among the four CEOs of the United Kingdom Bank who recently urged the Treasury Chancellor to discard the country’s fences rules, Sky News reported. According to reports, the measure aimed to boost the economy of the United Kingdom.
Ring fencing involves isolating the consumption banking business of a more risky investment banking activities.
