Richard Hunter, Head of Markets at interactive investor, says HSBC's (LSE:HSBA)'first-quarter results are a "blot on the copybook", driven by $1.3bn of credit impairment charges, including $300m linked to the Middle East conflict, and the continued absence of a resumed share buyback.
Hunter notes that revenue rose 6% to $18.6bn while pre-tax profit fell 1.1% to $9.38bn and net profit dipped 2.3% to $7.39bn, with net interest income up 7.7% to $8.95bn and ROTE excluding notable items edging to 18.7% even as the CET1 ratio eased to 14%.
He highlights HSBC's pivot into affluent wealth, fee income up 18% to $2.7bn and net new money of $39bn (Asia $34bn), and flags management's nudged Banking NII guidance to $46bn, accelerated $1.5bn cost savings and the maintained dividend as support for more diversified income streams.
"Credit impairments have largely blotted the copybook for this quarter, while the lack of a return to the share buyback programme may also provide some disappointment even though that return may not be far away"
