London Daily

Focus on the big picture.
Wednesday, Jul 02, 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

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×