HSBC Reports 25% Q1 Profit Drop, Announces $30B Stock Buyback

HSBC Holdings reported a 25% decline in pre-tax profit for the first quarter of this year, primarily due to one-time expenses associated with the disposal of its businesses in Canada and Argentina. The bank's pre-tax profit for the quarter stood at 9.5 billion dollars, down from 12.7 billion dollars in the same period last year. This significant drop in earnings highlights the challenges faced by the bank in navigating the current economic landscape.

The bank's announcement also included a 30 billion dollar stock repurchase plan, which is set to commence shortly after the annual general meeting of shareholders on May 2, 2025. This move follows the completion of a 20 billion dollar stock repurchase program announced during the release of the bank's full-year 2024 performance. The new repurchase plan is expected to be completed before the release of the 2025 interim results. Additionally, the board of directors has approved the payment of a first interim dividend of 0.10 dollars per share for 2025.

In its financial report, HSBC acknowledged the increasing uncertainty in the macroeconomic environment, particularly the volatility caused by protectionist trade policies. These factors have made economic forecasting and financial market stability more challenging, negatively impacting consumer and business confidence. Despite these headwinds, HSBC's decision to proceed with a substantial stock repurchase program demonstrates its confidence in its long-term prospects and financial stability. This strategic move is aimed at enhancing shareholder value and reinforcing the bank's commitment to its stakeholders.