At a glance
We’ve made a good start to 2024 and are continuing to reward our shareholders. Our Group CEO Noel Quinn has decided to retire from HSBC.
Key highlights
Highlights:
- We have announced today that Group Chief Executive Noel Quinn has informed the Board of his intention to retire from the bank after nearly five years in the role
- We’ve announced a first interim dividend of $0.10 and, following the sale of our business in Canada, a special dividend of $0.21 per share
- With a share buyback of up to $3bn, we’ve announced a total return to shareholders of up to $8.8bn
- Profit before tax included $3.7bn of notable items – this figure included a $4.8bn gain on the sale of our Canada business and a $1.1bn impairment relating to the planned sale of our Argentina business
- It also reflected the non-recurrence of notable items from 1Q23 (see Context behind the numbers)
- Operating expenses of $8.2bn were $0.6bn higher than in 1Q23, primarily due to continued investment in technology, the impacts of inflation and a change in the phasing of our performance-related pay accrual
- Annualised return on average tangible equity (RoTE) was 26.1%, or 16.4% excluding notable items – consistent with our mid-teens target for 2024
Group Chief Executive
“I’m pleased with our start to 2024. We completed the sale of our Canada business and agreed the sale of our Argentina business, both of which allow us to focus on markets with higher value international opportunities. Our good profit performance of $12.7bn in the first quarter has enabled us to continue the trend of rewarding our shareholders. Our 2024 guidance remains unchanged, including a mid-teens return on average tangible equity and continued cost discipline.
”It has been a privilege to lead HSBC and I'm proud of what we have achieved. After an intense five years, it is now the right time for me to get a better balance between my personal and business life. As we come to the end of the transformation phase, it feels like a good time to have new leadership for the next period of development and growth.”
Noel Quinn, HSBC Group Chief Executive
30 April 2024
Outlook
Our guidance remains unchanged from what we set out at full-year results in February. We continue to target a RoTE, excluding the impact of notable items, in the mid-teens for 2024, with banking net interest income of at least $41bn, dependent on the path of interest rates globally.
We intend to manage our common equity tier one (CET1) capital ratio within our medium-term target range of 14% to 14.5%, with a dividend payout ratio target of 50% for 2024, excluding material notable items and related impacts.
The Board has begun a formal process to find the next Group Chief Executive, considering both internal and external candidates. Noel will continue in the role during this process and ensure a smooth and orderly transition.
Context behind the numbers
In addition to an impairment following the announcement of the planned sale of our Argentina business, the reduction in profit before tax also reflected the non-recurrence of:
- A $2.1bn reversal in 1Q23 of an impairment relating to the sale of our retail banking operations in France – this was reinstated in 4Q23 prior to completion
- A $1.5bn gain recognised in 1Q23 on the acquisition of Silicon Valley Bank UK Limited (SVB UK)
Our revenue was boosted by growth in Wealth products, and Equities and Securities Financing, although it fell in Global Foreign Exchange following a strong 1Q23.
Revenue growth mitigated a reduction in interest income, but the growth was more than offset by higher operating expenses and expected credit losses and other credit impairment charges (ECL).
While target basis operating expenses rose by 7%, we are reconfirming our cost growth guidance of approximately 5% for 2024 compared with 2023.
Target basis operating expenses are measured on a constant currency basis, excluding notable items, the impact of retranslating the results of hyperinflationary economies at constant currency, and the direct costs from the sales of our France retail banking operations and our banking business in Canada.
Downloads and Zoom meeting
- 1Q 2024 Earnings Release (PDF 1MB)
- 1Q 2024 Presentation to Investors and Analysts (PDF 1MB)
- 1Q 2024 Data Pack (Excel) (XLSX 268KB)
- 1Q 2024 Data Pack (PDF) (PDF 691KB)
Find out more in our Investors section or view details of the Zoom meeting replay for investors and analysts.