HSBC Holdings plc announced its financial performance for the first quarter of 2025. The group reported a decline in profit before tax to $9.5 billion, impacted by the lack of one-off gains from the previous year related to the sale of businesses in Canada and Argentina. Profit after tax also saw a decrease, standing at $7.6 billion.
"Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy and confidence in our ability to deliver our targets," said Georges Elhedery, Group CEO. He further emphasized the group's commitment to customer support amidst economic uncertainties.
Despite a drop in overall profits, the firm saw strong performances in certain areas. Notably, wealth and foreign exchange business segments, alongside debt and equity markets, performed well, contributing positive results. Excluding specific notable items, profit before tax increased by $1 billion to $9.8 billion when compared to the same period last year.
Revenue dropped by 15% to $17.6 billion, largely stemming from business disposals. However, excluding notable items, revenue rose due to increased activity in wealth segments and foreign exchange markets.
Net interest income was $8.3 billion, marking a decrease due to previous business disposals and negative foreign currency translation effects. However, the firm reported operational stability with operating expenses of $8.1 billion, which were consistent with the previous year, despite inflation and restructuring costs.
The firm declared a first interim dividend of $0.10 per share for 2025 and completed a $2 billion share buy-back, with a planned initiation of a further $3 billion buy-back post-AGM in early May.
Looking ahead, HSBC aims to maintain mid-teens return on average tangible equity over the next few years, although acknowledging the heightened uncertainty in global markets. The macroeconomic environment is fraught with challenges like trade policy fluctuations impacting markets and economic forecasts. Despite these, HSBC intends to manage within a target CET1 capital ratio range and maintain its dividend payout strategy.
HSBC remains focused on delivering cost reductions and managing the impacts of the current market conditions while prioritizing support for its clientele.
“In the medium to long term, we continue to expect mid-single-digit percentage growth for year-on-year customer lending balances,” HSBC stated regarding its future outlook.
For more information, stakeholders are encouraged to contact Investor Relations or Media Relations at HSBC.