London Daily

Focus on the big picture.
Monday, Jul 21, 2025

HSBC pauses share buyback amid economic uncertainty

HSBC pauses share buyback amid economic uncertainty

The group’s net interest income is being buoyed by rising interest rates and a very active housing market.
HSBC announced on Tuesday it would halt stock buybacks for the year following disappointing financial results, triggering a 3.6% drop in its share price.

The bank blamed a perfect storm of tensions in Eastern Europe, soaring inflation, and economic uncertainty for the move to shore up its finances.

These factors, among others, impacted HSBC’s core capital ratio, an important metric in measuring a bank’s health, which fell by 1.7 percentage points to 14.1% from the end of 2021.

The bank’s capital is expected to take a further hit later this year when it sells off its French high street banking division at a loss of around £2.13bn ($2.7bn).

But elsewhere, things appeared more positive for HSBC - it reported a pre-tax profit of £3.29bn ($4.17bn) for the first quarter ending on March 31, beating analysts estimates.

Meanwhile, the Asia-focused but UK-based bank saw a £30.43bn ($38.6bn) increase in reported loans and advances to customers, totalling $1.1tn in the first quarter.

The lender is being closely watched as an indicator of the global financial system’s overall health, said one analyst.

“HSBC’s results have been long awaited and seen as a bellwether for the global economy,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“In an unsurprising turn of events, the group’s net interest income is being buoyed by rising interest rates and a very active housing market, especially in the UK. Total mortgage lending is up a huge $24bn (£18.92bn) year-on-year,” Ms Lund-Yates said.

“The macro environment has been factored into a positive outlook for interest income, but the raising of interest rates is only one consideration. While this helps interest income rise, the wider global economic outlook is much harder to predict.”

In February, the bank revealed that annual profits had more than doubled in 2021, but that it was battling challenges on several fronts in its key Chinese market.

HSBC warned that China's 'zero-COVID' measures to control the disease in Hong Kong were hurting the economy.

It added that it had released $900m in cash it had put aside in case pandemic-related bad loans spiked - which never materialised.
Newsletter

Related Articles

0:00
0:00
Close
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
×