HSBC Q1 RE­SULTS BEAT AN­A­LYST EX­PEC­TA­TIONS

Lender posts US$5b pre­tax profit on rev­enue of US$13b

New Straits Times - - Business -

HONG KONG/LON­DON

HSBC Hold­ings Plc yes­ter­day re­ported bet­ter-than-ex­pected first-quar­ter prof­its and cap­i­tal po­si­tion, boost­ing the lender’s share price in Hong Kong as the bank seeks to move from re­struc­tur­ing to growth.

The bank’s com­mon eq­uity Tier 1 ra­tio — a key mea­sure of its fi­nan­cial strength — was 14.3 per cent at the end of the March quar­ter, up from 11.9 per cent in the same pe­riod last year and bet­ter than the 13.7 per cent ex­pected by an­a­lysts.

HSBC chief fi­nan­cial of­fi­cer Iain Mackay ruled out a fresh share buy­back in the short term as a means of us­ing some of that ex­cess cap­i­tal, af­ter the bank said it com­pleted its pre­vi­ously an­nounced US$1 bil­lion (RM4.32 bil­lion) share buy­back last month.

“We’ve just fin­ished one, we need to catch our breath a little bit,” said Mackay yes­ter­day.

HSBC is ex­pected to re­ceive a fur­ther cap­i­tal boost as it will repa­tri­ate some US$8 bil­lion cur­rently stuck in its United States sub­sidiary, fol­low­ing the Fed­eral Re­serve’s ap­proval last year.

HSBC said pre­tax profit for the first three months of the year fell to US$5 bil­lion, down from US$6.1 bil­lion a year ago but bet­ter than the US$4.3 bil­lion ex­pected on av­er­age by an­a­lysts ac­cord­ing to the bank’s own sur­vey.

Rev­enue in the quar­ter dropped 13 per cent to US$13 bil­lion.

How­ever, the bank’s ad­justed profit be­fore tax, ex­clud­ing the ex­cep­tional items, rose 12 per cent in the quar­ter to US$5.9 bil­lion. Reuters

AFP PIC

HSBC Hold­ings Plc’s Tier 1 ra­tio — a key mea­sure of its fi­nan­cial strength — was 14.3 per cent at the end of the March quar­ter.

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