HSBC Q1 profit misses estimate, unveils $2-bn share buyback

London-based banking giant HSBC has revealed a surprise drop in first quarter profits

The bank's chief executive John Flint - who only took over in February - said: "A stronger revenue environment enabled us to invest in growing the business". "We are investing to grow revenue further".

Hong Kong shares of HSBC extended their losses on Friday after the results and were trading down 1.9 percent in afternoon trade, while the broader market was down 0.6 percent.

HSBC unexpectedly set aside $897 million related to a USA investigation into the historic sale of toxic US mortgage bonds.

Adjusted pretax profit at the bank's global private banking unit increased 53 percent to $113 million from $74 million for the corresponding period in 2017.

HSBC said the buyback would be the only one this year, "in light of the growth opportunities that we now see".




HSBC CEO JOHN FLINT, attributing the rise in costs to investment in its retail banking businesses in its core markets of Britain and China.

One of Flint's main concerns will be improving HSBC's return on equity, which came in at 7.5% in the quarter, lower than its target of 10% and below the last-reported levels at its closest western rivals in size, JPMorgan Chase & Co. and BNP Paribas SA.

Operating expenses rose to $9.4bn while revenue increased 6% year-on-year from $12.9bn to $13.7bn. However, achieving a 10% return for 2018 "looks hard", Finance Director Iain Mackay said on a call with reporters.

Signing off after a turbulent seven-year tenure, Mr Gulliver spent much of his time managing scandals and winding down businesses while trying to bring the bank back to revenue growth. It follows $5.5 billion worth of share repurchases HSBC has carried out in the previous two years. The profit in the latest quarter was below the US$5.76 billion average of analysts' estimates compiled by the bank. "Its peer, Bank of China Hong Kong, has reported quite good quarterly figures end of last month, we expect HSBC to do the same or even a little bit better".

Revenues remained strong at the start of the year, with adjusted revenues coming in at $13.9 billion, 3 per cent higher than a year ago, hitting analyst projections. "The Hong Kong dollar is now at the weak end of the peg [to the U.S. dollar] so it's possible that we'll have a more sustained rise in Hibor rates soon", Mr Flint said. Loans grew by $17 billion, or 2 per cent, in the first quarter.

Related news:

Hot News

isis-killer-beheading-video-story-top Trump Said He Would Reduce US Trade Deficit, Now It's Shrinking
May 05, 2018 - 01:31
The president views trade deficits as a sign of economic weakness that can be brought down by more aggressive trade policies. March's drop in core capital goods orders and shipments suggest business spending on equipment is slowing.

isis-killer-beheading-video-story-top New Jersey "Pooper-intendent" arrested for defecating on football field
May 05, 2018 - 01:30
Tramaglini has taken a paid leave of absence from his $147,504 a year job in Kenilworth. Paid leave is required by law unless an employee faces an indictment or tenure charges.

isis-killer-beheading-video-story-top Stamp Out Hunger food drive May 12
May 05, 2018 - 01:30
On Saturday, May 12, the Branford Letter Carriers will participate in the largest food drive in the country. Perhaps most alarming is the fact that almost 16 million children in America are struggling with hunger.

isis-killer-beheading-video-story-top 41Erdogan Becomes Presidential Candidate From Turkish People's Alliance - PM
May 05, 2018 - 01:29
Eleven political parties will participate in the early parliamentary and presidential election, to be held in Turkey on June 24. Erdogan has served as president since 2014 - Turkey's first popularly elected president.

isis-killer-beheading-video-story-top Tesla's Musk calls Wall Street snub 'foolish' but defends his behaviour
May 05, 2018 - 01:28
Even after reaching 5k/week production, it would take 2 years just to satisfy existing demand even if new sales dropped to 0. CNBC reported that Musk's decision to ignore the questions pushed Tesla's stock down by 5.6 percent Thursday.

isis-killer-beheading-video-story-top Penguins - Capitals nastiness boils over in Letang - Oshie fight
May 05, 2018 - 01:27
Malkin was able to leap headfirst and just get the puck over the goal line, between his blade and Holtby's blocker. Dustin Byfuglien had two goals and an assist for Winnipeg, while Paul Stastny added a goal and two assists.

isis-killer-beheading-video-story-top Steven Gerrard Confirmed As Rangers Manager
May 05, 2018 - 01:26
He said: "Stability is the key and I want to give these supporters an exciting team and a winning team and one to be proud of. It's always a challenge and for someone like him who loves football , it's an opportunity to show his level.

Kris Jenner opens up about Kanye West's recent behaviour
May 05, 2018 - 01:26
A TMZ staffer, identified as Van Lathan, was present when West made his remark and challenged the rapper on the spot. He is a free moron who doesn't read". "They cut out our tongues so we couldn't communicate to each other.

isis-killer-beheading-video-story-top Judge Accuses Mueller Team of Prosecuting Manafort to Get Info on Trump
May 05, 2018 - 01:25
The hearing ended without a ruling, and Ellis didn't say when he would decide the matter in federal court in Alexandria, Virginia. Most of the charges against Manafort relate to his lobbying work for the Ukrainian government and pro-Russian interests.

isis-killer-beheading-video-story-top 2 shot at Mill Valley apartment complex, search for shooter underway
May 04, 2018 - 09:47
Authorities are responding to reports of an active shooter at an apartment complex in Mill Valley, Calif., officials said. An elderly man who police consider armed and unsafe is being sought following a shooting at a Marin apartment complex.

isis-killer-beheading-video-story-top NJ school's chief out for run charged with public defecation
May 04, 2018 - 09:43
Mr Tramaglini, who earns almost $150,000 (£110,000) per year as head of the local education authority, was arrested. In addition to defecating in public, he was charged with lewdness and littering.

isis-killer-beheading-video-story-top Britain's unmerited hostility to immigration is holding the country back
May 04, 2018 - 09:43
Subsequently, Theresa may apologized to the Caribbean countries that are part of the Commonwealth of Nations. Mr Javid said he wanted to examine the removal targets in detail before deciding on their future.

isis-killer-beheading-video-story-top Investigating cracks in airplane windows
May 03, 2018 - 09:31
The plane, which had departed from La Guardia Airport in NY and was bound for Dallas, made an emergency landing in Philadelphia . With that said, it is understandable that when another flight's window broke mid-flight Wednesday, it caused a bit of a panic.

isis-killer-beheading-video-story-top Should Tesla Be Worried About This $2 Billion Patent Suit?
May 03, 2018 - 09:31
A Nikola spokeswoman said via email that the company won't provide additional comment on the lawsuit, which "speaks for itself". Tesla has not yet begun regular production of its semi-truck, but plans to do so next year.

isis-killer-beheading-video-story-top Scheifele leading the National Hockey League playoffs in goals
May 03, 2018 - 09:28
And then , just 20 minutes later, my computer was literally shaking along with the building as I tried to type. We can be upset for 10 minutes and then after that we've got to get our rest and get ready for Tuesday".