HSBC’S buy­back call

Financial Mail - - MARKET WATCH -

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%.

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