HSBC profits triple to $12.9 billion on rate hikes as lender shakes off banking turmoil to pay quarterly dividend for first time in four years
- HSBC announced it would pay shareholders a dividend of 10 cents per share
- The company revealed that its pre-tax profit skyrocketed to $12.9 billion in the first quarter
HSBC has announced its first quarterly dividend since the pandemic after earnings more than tripled in early 2023.
Europe’s largest bank said on Tuesday it would pay shareholders a dividend of 10 cents (8p) per share, following its last quarterly payout in 2019, and conduct a share buyback of up to $2bn (£1.6bn) .
The FTSE 100 company revealed that pre-tax earnings skyrocketed to $12.9 billion between January and March, up from $4.2 billion a year earlier and beating analyst expectations of $8.6 billion .
Dividend: Britain’s largest banking group announced it would pay shareholders a dividend of 10 cents per share, following its last quarterly payout in 2019
Earnings growth was driven by central banks raising base rates in response to high inflation, boosting HSBC’s net interest income.
Earnings were also boosted by a $1.5 billion preliminary gain related to the purchase of Silicon Valley Bank’s UK business after the lender abruptly collapsed in March due to the plummeting value of its long-term bond portfolio.
The bank further benefited from the reversal of a $2.1 billion impairment charge on the planned sale of its retail banking operations in France due to doubts about the future of the deal.
HSBC Shares jumped 4.6 percent to 600 pence in early trading, after rising 14.3 percent year-to-date,
HSBC CEO Noel Quinn said: “Our earnings were spread across our key geographies, and all three global businesses performed well as we continued to meet the needs of our customers through our internationally connected franchises.
“With the good momentum we have in our business, we expect to have substantial distribution capacity for dividends and share repurchases going forward.”