Welcome to Extreme Investor Network, where we bring you the latest updates and insights from the world of finance. Today, we’re diving into the recent first-quarter earnings report from HSBC, Europe’s largest bank by assets.
HSBC exceeded market expectations with its revenue coming in at $20.8 billion, a 3% increase from the same period last year. The pretax profit for the January to March period was $12.65 billion, slightly lower than the previous year but still surpassing analyst estimates.
In a surprising turn of events, Group Chief Executive Officer Noel Quinn announced his retirement after nearly five years in the position. Under his leadership, HSBC achieved record profits and strong returns. Quinn will continue to serve as Group CEO during the transition period as the bank searches for his successor.
Highlights from HSBC’s first-quarter financial report include a decrease in net interest margin to 1.63%, a rise in the common equity tier 1 ratio to 15.2%, and a slight increase in basic earnings per share to $0.54.
Looking ahead, HSBC reiterated its outlook for 2024, maintaining its target for a return on average tangible equity in the mid-teens and a dividend payout ratio of 50%. The bank also expects its CET1 capital ratio to remain within the range of 14% to 14.5%.
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