1Q 2018 update

The 1Q 2018 Earnings Release, investor presentation and data pack are available to download.

At a glance

Our international network, universal banking model and capital strength deliver long-term value for customers and shareholders.

Our operating model consists of four global businesses and a Corporate Centre, supported by HSBC Operations, Services and Technology and 11 global functions.

4.8bn
US DOLLARS
Reported profit before tax
(1Q17: US$5.0bn)
6.0bn
US DOLLARS
Adjusted profit before tax
(1Q17: US$6.2bn)
13.9bn
US DOLLARS
Adjusted revenue
(1Q17: US$13.5bn)
14.5
PER CENT
Common equity tier 1 ratio
(31 Dec 2017: 14.5%)

Key highlights


  • Reported profit before tax was US$4.8bn, down 4%; adjusted profit before tax was US$6.0bn, down 3%

  • Reported revenue was US$13.7bn, up 6%; adjusted revenue was US$13.9bn, up 3%

  • Reported operating expenses were US$9.4bn, up 13%, primarily reflecting investments to grow the business and enhance our digital capabilities; adjusted operating expenses were US$8.2bn, up 8%

  • Net loans and advances to customers rose US$17bn, or 2%, in the quarter

Group Chief Executive

“Our global businesses performed well in the first quarter, maintaining momentum from the end of 2017. We continue to benefit from interest rate rises and economic growth, particularly in Asia. Our primary focus is to grow the businesses safely, and we have increased investment to deliver that aim. We intend to deliver positive jaws for 2018.”


John Flint, HSBC Group Chief Executive
4 May 2018

 

New share buy-back

We plan to initiate a share buy-back of up to US$2bn, which is expected to commence shortly.

Key financial metrics

Return on equity

In the first quarter of 2018, the return on average ordinary shareholders’ equity was 7.5% on an annualised basis. Return on average tangible equity was 8.4%.


Return on average ordinary shareholders’ equity

(%, annualised)
1Q 2018 7.5
1Q 2017 8

Return on average tangible equity

(%, annualised)
1Q 2018 8.4
1Q 2017 9.1

Dividends declared (US$ per ordinary share)

In the current uncertain environment, we plan to sustain the annual dividend in respect of the year at its current level for the foreseeable future. Growing our dividend in the future will depend on the overall profitability of the Group, delivering further release of less efficiently deployed capital and meeting regulatory capital requirements in a timely manner.

1Q 2018 0.1
1Q 2017 0.1

Video


Iain Mackay, Group Finance Director, HSBC, discusses the bank’s capital strength and returns for shareholders.

Iain Mackay, Group Finance Director, HSBC (duration 2:41)

Downloads

1Q 2018 Earnings Release