Investing.com-- HSBC Holdings (HK:0005) (LON:HSBA)(HSBA.L) on Tuesday reported a 25% fall in first-quarter profit due to the absence of one-off gains which boosted earnings a year earlier, and launched a $3 billion share buyback.
The London-based bank reported profit before tax of $9.5 billion in the first quarter, down from $12.7 billion a year earlier, although it was above average analysts’ estimates of $7.8 billion.
Shares in HSBC rose 2% in London trading by 08:00 GMT.
The year-ago results included $3.7 billion in net impacts from the sale of its banking businesses in Canada and Argentina. Excluding such notable items, adjusted profit before tax rose 11% to $9.8 billion, supported by strong performances in the Wealth business and capital markets divisions.
The bank projected $900 million in anticipated credit losses for the quarter, with $150 million attributed to increased economic uncertainty.
"We have assessed plausible downside scenarios that model significantly higher tariffs, and related impacts on growth, policy rates and inflation on our earnings," the company said in a statement.
It expects a low single-digit percentage direct impact on the Group’s revenue and an additional $500 million credit losses, if higher tariffs result in a global growth slowdown.
Revenue dropped 15% year-on-year to $17.6 billion, while net interest income slipped 4% to $8.3 billion, partly due to foreign currency effects and past divestments.
HSBC declared a $0.10 per share interim dividend and announced plans for a $3 billion share buyback, following the completion of a $2 billion repurchase earlier in April.
Looking ahead, HSBC said it remains committed to achieving a mid-teens return on tangible equity between 2025 and 2027, excluding notable items.
It reaffirmed its 2025 net interest income target of around $42 billion, though it warned that macroeconomic volatility could impact lending demand and credit costs.
Jefferies analysts said Q1 was a "strong print" for HSBC, "with forward look steady."
Ayushman Ojha contributed to this report.