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- HSBC Holdings PLC HSBC reported a Q1 2023 revenues increase of 64% Y/Y to $20.2 billion (+74% Y/Y in constant currencies).
- Revenues benefited from higher net interest income (NII) across global businesses on the increased interest rates and gains related to the transactions in France and the U.K.
- Net interest margin expanded by 50 basis points to 1.69%.
- Loan and advances rose to $963 billion from $924 billion at the end of Dec-2022, led by the reclassification of $25 billion of balances related to retail banking operations in France and the addition of $7 billion from the Silicon Valley Bank (SVB) UK acquisition in March.
- Deposits fell to $76 billion in Q1 from $67 billion a year ago, reflecting outflows in HSBC UK, Commercial Banking and Global Banking and Markets in Hong Kong. Combined customer deposits stood at $1.67 trillion in Q1.
- Related: Silicon Valley Bank's UK Arm Bought By HSBC For About $1
- Operating expenses declined 7% Y/Y to $7.6 billion, mainly due to lower restructuring and other related costs (following the completion of the cost-saving program at the end of 2022).
- Profit before tax rose significantly to $12.9 billion for Q1 from $4.1 billion a year earlier, with an impairment charge reversal of $2.1 billion related to the planned sale of its French operation and a provisional gain of $1.5 billion from SVB UK acquisition.
- EPS rose to $0.52 in Q1 from $0.14 in the prior-year quarter and beat expectations, as per Reuters.
- HSBC reported credit losses and other credit impairment charges of $0.4 billion (vs. $0.6 billion).
- Common equity tier 1 capital ratio stood at 14.7% in Q1 vs. 14.1% a year ago.
- Dividend & Repurchase: HSBC announced its first quarterly dividend, since 2019, of $0.10 per share. The bank also declared a share buyback of up to $2 billion.
- HSBC continues to expect NII of at least $34 billion in 2023 and RoTE of at least 12% for 2023 onwards.
- Price Action: HSBC shares are trading higher by 4.76% at $37.51 on the last check Tuesday.
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