Saudi Press

Saudi Arabia and the world
Sunday, Feb 16, 2025

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

Saudi Press
0:00
0:00
Close
U.S. and Russian officials are set to convene in Saudi Arabia to discuss ways to conclude the conflict in Ukraine. Meanwhile, Ukrainian and European leaders, who benefit from this war, have been left out of the discussions.
The special envoy for hostage affairs appointed by Trump cautions Hamas against challenging him before the Saturday deadline.
Trump Asserts BRICS 'Is No More' in Light of Tariff Threats
Trump Announces Scheduled Meeting with Putin in Saudi Arabia Amidst Ukraine Crisis
Israel Warns of Military Action as Hostage Talks with Hamas Continue
CPJ Report Finds Highest Number of Journalists Killed in 2024
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Strategy
Apple Releases Critical Security Update Following Reports of Vulnerabilities
Israel Warns It May Terminate Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Move Palestinians, Promises to Welcome Children from Gaza.
OpenAI Reiterates Its Independence After Musk's $97 Billion Proposal
Saudi Arabia Assumes Presidency of GlobE Network to Combat Corruption
Riyadh Season 2024 Attracts 19 Million Visitors in Four Months
Saudi Schools Celebrate Founding Day with Nationwide Festivities
Saudi Arabia Participates in AI Action Summit in Paris
Saudi Arabia Issues Premium Residency to 685 Tech Experts
Saudi Arabia Sends Relief Convoy to Syria Amid Ongoing Humanitarian Crisis
Saudi Arabia Launches Electronic Service for Issuing Passports to Adopted Family Members
Saudi Ministry of Hajj and Umrah Introduces Flexible Payment Plan for Domestic Pilgrims
Saudi Council of Ministers Rejects Israeli Statements on Palestinian Displacement
Saudi Air Force to Participate in Cobra Warrior 25-1 Exercise in the UK
Countryside Winter Festival in Madinah Attracts Over 7,000 Visitors
KSrelief Expands Humanitarian Efforts Across Multiple Nations
Saudi Arabia and Argentina Strengthen Diplomatic Relations in Riyadh Meeting
Saudi Tailor Yousef Tammar Enrolls at Italy's Renowned Accademia Nazionale dei Sartori
Head of Muslim World League Visits Guinea-Bissau to Review Medical Initiatives
Saudi Arabia Advances Carbon Credit Initiatives Through Workshop
GCC Secretary-General Meets Sumitomo Corporation Chairman in Riyadh
Exhibition of the Holy Kaaba’s Kiswah at Islamic Arts Biennale 2025
Saudi Arabia's Mental Health Revolution: A Shift Towards Awareness and Accessibility
16th Klija Festival Highlights Local Beekeeping and Honey Production in Saudi Arabia
Saudi Arabia Dismantles Three Drug Trafficking Gangs, 19 Arrested
Boston Dynamics Founder Addresses Robotics and Regulation at Riyadh Summit
Saudi Royal Guard Celebrates Graduations and Sports Competitions
IBM Invests in AI Workforce in Saudi Arabia Amid Vision 2030 Initiatives
Saudi Arabia's Startup Ecosystem Sees Significant Funding Influx Ahead of LEAP 2025
Riyadh Expo 2030: A New Frontier for Saudi Arabia's Global Presence
Saudi Aramco Official Discusses Key Factors for Unlocking AI Potential at LEAP 2025
Saudi Arabia Unveils $14.9 Billion Investments at LEAP 2025 Tech Conference
Tencent Cloud to Launch Operations in Saudi Arabia by 2025 with $150 Million Investment
Saudi Arabia Emerges as Regional Technology Hub
Saudi Arabia's Sports Sector: A Catalyst for Economic Diversification
LEAP 2025: Saudi Arabia’s Tech Ambitions Take Center Stage
Saudi Ma’aden Achieves Successful $1.25 Billion Debut Sukuk Issuance
Pakistan Seeks to Strengthen Trade Ties with Saudi Arabia
Lenovo and Saudi PIF’s Alat Break Ground on Manufacturing Hub in Riyadh
Saudi Royal Decree Exempts Government Agencies from Licensing Fines
Saudi Arabia Elected to IAACA Executive Committee Amid Global Anti-Corruption Efforts
Royal Saudi Navy Joins AMAN-25 Maritime Exercise in Pakistan
Saudi Crown Prince Hosts IOC President for Enhanced Cooperation Talks
×