HSBC saw profit before tax in Q1 2024 total $12.7bn, a year-on-year decrease of $0.2bn.
This includes a $4.8bn bonus considering the disposal of HSBC’s business in Canada, inclusive of fair value gains on the hedging of the sale proceeds, partly offset by a $1.1bn impairment recognised in Q1 2024 following the classification of the HSBC business in Argentina as held for sale.
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The Argentina deal is worth $550m, subject to certain price adjustments. It is expected to be completed within the next 12 months.
However, profit after tax totalled $10,837m in Q1 2024 for HSBC, a drop from the $11,026m in Q1 2023.
In addition, revenue increased by $0.6bn (3%) year-on-year to reach $20.8bn and this reflected higher customer activity in wealth and personal banking.
Wealth and personal banking recorded a profit before tax of $3,181m in Q1 2024 for HSBC, a whopping 40% drop year-on-year from $5,324m.
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By GlobalDataGlobal private banking revenue was $0.1bn or 16% higher due to strong performance in brokerage and trading in Asia.
However, personal banking revenue was $4.9bn, down 2% or $0.1bn.
Noel Quinn, group chief executive, said: “I’m pleased with our start to 2024. We completed the sale of our Canada business and agreed the sale of our Argentina business, both of which allow us to focus on markets with higher value international opportunities. Our good profit performance of $12.7bn in the first quarter has enabled us to continue the trend of rewarding our shareholders. We have announced a total of $8.8bn of distributions, consisting of a first interim dividend for 2024 of $0.10 per share, a special dividend of $0.21 per share from the Canada sale proceeds, and a new share buy-back of up to $3bn. Our 2024 guidance remains unchanged, including a mid-teens return on average tangible equity and continued cost discipline.“
Quinn will be stepping down as chief executive following five years in charge.
