HIGHER INTEREST RATES HELP HSBC TRIPLE PROFITS – HSBC Resume Quarterly Dividends as Pre-tax profits came in at $12.9bn
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.