London-based HSBC more than tripled its pre-tax profit in the first quarter of 2023 due to multiple drivers including gains from the Silicon Valley Bank acquisition and significantly higher income.
HSBC registered a pre-tax profit of $12.9 billion in the first quarter of 2023, according to the bank’s financial statement, up 311 percent year-on-year.
«Our strong first quarter performance provides further evidence that our strategy is working,» said HSBC group CEO Noel Quinn. «Our profits were spread across our major geographies, and all three global businesses performed well as we continued to meet our customers‘ needs through our internationally connected franchises.»
Net operating income surged 69 percent to $19.7 billion due in part to a 38 percent increase in net interest income to nearly $9 billion. Net interest margin rose 50 basis points to 1.69 percent.
SVB
Another noteworthy income contributor was a $1.5 billion provisional gain from the acquisition of Silicon Valley Bank (SVB) UK.
«For 158 years, HSBC has banked the entrepreneurs who have created today’s industrial base,» Quinn said. «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.»
HSBC also gained $2.1 billion from the reversal of an impairment loss related to the planned sale of its retail banking operations in France. Operating expenses fell 7 percent to $7.6 billion.
Due to the positive performance, the bank announced its first quarterly dividend since 2019 of $0.10 per share alongside share buybacks of up to $2 billion.
