Arab Press

بالشعب و للشعب
Saturday, Apr 20, 2024

Higher interest rates help HSBC triple profits and resume quarterly dividends

Higher interest rates help HSBC triple profits and resume quarterly dividends

The UK-based bank says it has put a "provisional gain" of $1.5bn on the acquisition of Silicon Valley Bank UK, for just £1, last month.
The UK-based bank says it has put a "provisional gain" of $1.5bn on the acquisition of Silicon Valley Bank UK, for just £1, last month.

HSBC has reported a trebling of first quarter profits, aided by higher interest rates.

Europe's largest bank, which is based in the UK, said its performance meant it was able to pay its first quarterly dividend since 2019.

Pre-tax profits came in at $12.9bn (£10.3bn) between January and March compared to $4.2bn (£3.4bn) in the same period last year.

The figure smashed financial market expectations of a sum closer to $8.7bn ($7bn).

Revenue rose 64% to just over $20bn ($16bn) as net interest income shot up on the back of the interest rate increases.

UK rivals NatWest and Barclays have already reported a similar benefit as central banks continue to bear down on soaring inflation.

HSBC also credited a "provisional gain" of $1.5bn (£1.2bn) on the acquisition, for £1, of Silicon Valley Bank UK (SVB UK) in March when its US parent collapsed.

Sky News has since reported how the takeover prompted a big inflow of deposits at SVB UK - a vital cog for thousands of tech-related start-ups.

HSBC, which is expected to change the name of its new UK business in the coming months, said group profits were boosted too by the reversal of a $2bn (£1.6bn) provision it had taken against the planned sale of its French business.

That reflected the fact that the deal may no longer go through as the buyer has concerns over capital buffers at the French business.

HSBC rewarded shareholders with a new cycle of buybacks of up to $2bn and said a dividend of $0.10 per share would be paid.

Hong Kong-traded shares were 3% higher in the wake of the performance.

Chief executive Noel Quinn told investors: "With the good momentum we have in our business, we expect to have substantial future distribution capacity for dividends and share buy-backs.

"We remain focused on continuing to improve our performance and maintaining tight cost discipline, but we also saw an opportunity to invest in SVB UK to accelerate our growth plans.

"For 158 years, HSBC has banked the entrepreneurs who have created today's industrial base. With the SVB UK acquisition, we have access to more of the entrepreneurs in the technology and life sciences sectors who will create the businesses of tomorrow.

"We believe they're a natural fit for HSBC and that we're uniquely placed to take them global."
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×