HSBC boss Noel Quinn steps down as bank reports first-quarter profit that beat estimates thanks to sale of Canadian business
- Announcing his retirement after five years at the helm, Quinn said it was the ‘right time’ to look for a better work-life balance
- The lender’s net profit slipped 1 per cent from a year ago to US$10.2 billion, surpassing the US$9.24 billion profit expected by analysts polled by Bloomberg
That surpassed the US$9.24 billion profit expected by analysts polled by Bloomberg, thanks to a one-off gain from the sale of its Canadian business.
Pre-tax profit fell 1.7 per cent from a year ago to US$12.65 billion, which was much better than the consensus estimate of US$7.9 billion.
The impressive numbers came on the back of a US$4.8 billion gain following the sale of HSBC’s banking business in Canada to Royal Bank of Canada, though this was partly offset by a US$1.1 billion impairment following the sale of its Argentina business.
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“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,” said CEO Noel Quinn in an earnings statement to the Hong Kong stock exchange on Tuesday.
In a separate statement, he said it was the “right time” to look for a better work-life balance and that he intends to “pursue a portfolio career”.
“I am proud of what we have achieved, and it has only been possible because of the talent, dedication, and commitment of the people at HSBC.”
The bank said it is in the process of finding a successor and that Quinn will continue in his role during this process to ensure “a smooth and orderly transition.”
“My first intention, once the successor is appointed, is to actually have a bit of a rest,” Quinn added. “It’s been a pretty intense 16 years. So first point of order is to spend some time with the family and the extended family. I’ll probably take on some non-executive positions, advisory positions and just get a better balance between business life and personal life.”
HSBC announced a new US$3 billion share buy-back programme that will commence soon, and a first-quarter dividend of US$0.10 per share, up slightly from US$0.09 in the first quarter 2023.
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The lender announced a special dividend of US$0.21 per share in the first half of this year after completing the sale of its Canadian business.
The London-based bank generates much of its revenue in Asia.
Overall, the bank’s Asian business reported a first-quarter pre-tax profit decrease of 6.9 per cent from a year earlier to US$5.4 billion. Revenue rose by 3 per cent to US$20.8 billion, which was higher than estimates of US$16.53 billion.
Revenue growth was driven by the sales of the Canadian and Argentine units but also reflected growth in demand for wealth management products, HSBC said in its statement.
Net interest income fell by 3.3 per cent to US$8.7 billion, compared with US$9 billion a year earlier. The bank’s net interest margin, an important measure of profitability, fell 6 basis points to 1.63 per cent.
The bank said it expects to complete the sale of its Russian business sometime in the second quarter.
HSBC’s shares advanced 2.2 per cent to HK$67 on Tuesday.
