HSBC Reports Strong Q1 Earnings Amid Global Economic Uncertainty

London, United Kingdom – HSBC Bank plc, Europe’s largest lender, released its first-quarter results on Tuesday, exceeding estimates primarily due to strong performance in its wealth management and corporate banking sectors. The bank revealed it would implement a share buyback of up to $3 billion, which it plans to complete before announcing its interim results for 2025.

Despite its strong quarterly showing, HSBC reported a 25% decline in profit before tax compared to last year and a 15% drop in revenue. However, pre-tax profit saw a significant surge of nearly 317% from the previous quarter.

“Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy, and confidence in our ability to deliver our targets,” said HSBC Group CEO Georges Elhedery.

The bank also cautioned about heightened macroeconomic uncertainties. Elhedery noted, “Protectionist trade policies are impacting consumer and business sentiment.” DBS Bank equity research analyst Manyi Lu echoed this sentiment, suggesting the effects of tariffs and recession concerns may become more evident in coming quarters.

Investors are particularly focused on whether HSBC will adjust its future guidance in light of ongoing tariff issues, especially considering the U.S. tariffs implemented on steel, aluminum, and autos since March. Lu mentioned the possible impact of tariffs on ASEAN countries after a 90-day grace period could also be significant.

The announced $3 billion buyback exceeds Morningstar‘s expectation of $2 billion, according to analyst Michael Makdad. Following these developments, HSBC’s stock performance will be closely monitored by investors.

In a related effort to advocate for the UK economy, HSBC CEO Georges Elhedery and three other bank CEOs recently urged the Chancellor of the Exchequer to eliminate the country’s ring-fencing regulations, which separate consumer banking from investment banking activities.

As part of its strategic reorganization, HSBC plans to divide its operations into four distinct sectors, separating “Eastern markets” and “Western markets.” Nevertheless, this restructuring is expected to incur up to $1.8 billion in severance and related costs over the next two years.