<匯港通訊> HSBC Holdings (0005.HK) announced that the benchmark pre-tax profit for the first quarter ended March was US$4.166 billion, a year-on-year decrease of 27.9%, which was better than expected. The relevant decrease reflected the first expected credit losses in 2022 and other credit impairment provisions A net charge was recorded, as well as a decline in revenue. Based on the forecasts of multiple brokerages, the median pre-tax profit of HSBC in the first quarter was US$3.72 billion, down 35.6% year-on-year. Profit after tax on the basis of reporting decreased by 24.6% to $3.443 billion; adjusted profit before tax decreased by 25.1% to $4.706 billion. All regions continued to post profits. HSBC did not pay a quarterly dividend.
HSBC Holdings (0005.HK) Price Information
Revenue on a basis of reporting decreased 4% to $12,464 million; adjusted revenue fell 3% to $12,549 million. Net interest margin was 1.26%, an increase of 5 basis points year-on-year and an increase of 7 basis points compared to the fourth quarter of 2021. Basis operating expenses fell 3 percent to $8.312 billion, and adjusted operating expenses fell 2 percent to $7.857 billion.
During the period, the basis for reporting expected credit losses recorded a charge of US$600 million, compared with a reversal of US$400 million in the same period last year. Expected credit losses rose, mainly reflecting the immediate and broad economic impact of the Russian-Ukrainian war and inflationary pressures on the forward economic outlook, but were moderated by the repatriation of most of the COVID-19-related reserves.
HSBC’s common equity tier 1 capital ratio (CET1) in the first quarter was 14.1%, down 1.7 percentage points from the previous quarter, due to a decrease in common equity tier 1 capital of US$11.2 billion and an increase in risk-weighted assets of US$24 billion, including the group’s announcement in 2021 Announced a repurchase of up to $1 billion of shares during its full-year results. Return on tangible equity (ROTE) was 6.8% year-on-year, down 3.4 percentage points year-on-year.
HSBC said that the work related to the repurchase of up to 2 billion US dollars of shares announced in the third quarter of last year was completed on April 20, 2022, and the purchased and cancelled shares reached 2 billion US dollars, which was announced when the 2021 annual results were announced. Further share repurchases of up to $1 billion are planned to commence after the AGM on April 29, 2022. (EC)
