The HSBC Board has approved a first interim dividend of $0.10 per share

DividendMax Ltd.

The HSBC Board has approved a first interim dividend of $0.10 per share

The HSBC Board has approved a first interim dividend of $0.10 per share. They also intend to initiate a share buy-back of up to $2bn, which they expect to commence following their 2023 Annual General Meeting ('AGM'). The share buy-back is expected to have an approximately 25bps impact on the CET1 capital ratio.

Other financial highlights include:

•  Revenue increased by 64% to $20.2bn. 

•  Net interest margin ('NIM') of 1.69% increased by 50 basis points ('bps') compared with 1Q22, and by 1bps compared with 4Q22.

•  Expected credit losses and other credit impairment charges ('ECL') of $0.4bn were down by $0.2bn. The reduced 1Q23 charge reflected a favourable change in the probability weightings of economic scenarios and a low stage 3 charge of $0.4bn. The 1Q22 charge reflected economic uncertainty mainly due to the Russia-Ukraine war and inflationary pressures.

•  Operating expenses of $7.6bn were $0.6bn or 7% lower than in 1Q22. 

•  Customer lending balances increased by $40bn in the quarter. On a constant currency basis, lending balances grew by $32bn, mainly as $25bn of balances associated with our retail banking operations in France were reclassified from held for sale during the period. In addition, the growth included $7bn of additional balances following our acquisition of SVB UK during the quarter. Excluding these factors, customer lending was stable.

•  Customer accounts increased by $34bn in the quarter. 


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