HSBC’S buyback call
HSBC Holdings’ new CEO sought to cheer investors with a share buyback of up to Us$2bn, even as the bank reported an unexpected 4% drop in first-quarter pretax profit on Friday due to a surge in investments.
However, Europe’s biggest bank by assets said this would likely be the only share buyback this year, as CEO John Flint looks to deploy more capital into its businesses to tap growth opportunities.
HSBC’S pretax profit of $4.76bn for the three months to March 31 compared with $4.96bn in the year-ago period. Profit shrank mainly as a nearly 13% rise in operating expenses outpaced revenue growth of 5.5%.