Brussels, Belgium – HSBC exceeded market expectations with its first-quarter earnings report, which also marked the surprising departure of Group CEO Noel Quinn. Revenue for the period totaled $20.8 billion, a 3% increase from the previous year and surpassing the projected $16.94 billion. The bank reported a pretax profit of $12.65 billion, slightly lower than the previous year’s $12.89 billion, but still beating analysts’ estimates of $12.61 billion.
While profits after taxes dipped to $10.84 billion, below the $11.03 billion reported in the first quarter of 2023, HSBC remains Europe’s largest bank by assets. The company’s board announced a first interim dividend of 10 cents per share and a special dividend of 21 cents per share following the completion of the sale of its Canadian banking business.
In addition to the financial results, HSBC revealed the retirement of CEO Noel Quinn, who had been in the role for nearly five years. Group Chairman Mark Tucker expressed gratitude for Quinn’s contributions during his 37-year tenure at the bank. Aileen Taylor, HSBC’s group company secretary and chief governance officer, acknowledged Quinn’s leadership in delivering record profits and strong returns during his time as CEO.
Quinn will continue as Group CEO while the bank searches for his successor, agreeing to offer support through his 12-month notice period ending in April 2025. Key highlights from HSBC’s first-quarter financial report included a decrease in net interest margin to 1.63%, a common equity tier 1 ratio of 15.2%, and a basic earnings per share of $0.54.
Looking ahead to 2024, HSBC reiterated its financial outlook, maintaining the guidance provided in February. The bank aims for a return on average tangible equity in the mid-teens, with net interest income in banking expected to reach at least $41 billion. HSBC also outlined targets for its CET1 capital ratio and dividend payout ratio for the year.