HSBC reported a pre-tax profit of $12.9 billion for the three months to the end of March, more than three times the amount it made during the same period last year. The bank also saw a boost from the reversal of its plan to write-off $2.1 billion due to uncertainty surrounding the sale of its French business.
HSBC's acquisition of Silicon Valley Bank in March for £1 has given them a significant advantage, providing an additional $1.5 billion (£1.2 billion) boost to their balance sheet in just over two months' time. As a result, pre-tax profits have soared by more than $4 billion (£3.2 billion), while revenue increased by 64% to reach $20.2 billion.
In light of this financial success, HSBC announced its first quarterly payout since 2019—a dividend payment equating 10 cents per share—and revealed plans for a buy-back worth up to $2 billion worth of shares on top of that.
These figures come after First Republic Bank was sold off by JP Morgan Chase & Co., becoming the third major US lender acquired within two months.
Noel Quinn, Chief Executive Officer at HSBC Holdings plc., expressed optimism about these positive results: "Our strong start this year reflects our focus on growth markets and our commitment to constantly improving efficiency."
The bank's improvement is not only reflected through profits but also operationally as operating expenses decreased by 7%, totaling at around$7.6bn dollars in cost reductions compared with last year's numbers.
In addition to all these encouraging financial updates, rumors continue circulating regarding whether or not HSBC will complete their planned sale involving their French business division—something which remains uncertain until further notice from both parties involved.