Story perspectives

HSBC's Profits Plunge 25% Amid Global Economic Strains

4/29/2025

47 7

Summary

Story summary

HSBC's pre-tax profit fell 25% to $9.5 billion in Q1, surpassing analyst forecasts.
The bank raised bad loan provisions to $876 million, citing geopolitical tensions and trade tariffs.
Revenue decreased 15% year-on-year to $17.65 billion, influenced by the sale of Canadian and Argentine operations.
HSBC plans a $3 billion share buyback, targeting completion before the 2025 interim results.
CEO Georges Elhedery highlighted the bank's resilience in a challenging economic environment.

History

Historical Context

HSBC's recent profit drop mirrors its historical challenges during economic upheavals, notably the 2008 financial crisis. Back then, HSBC faced significant losses from subprime mortgages, prompting strategic shifts. Today, geopolitical tensions and bad loan provisions echo past crises, underscoring the bank's ongoing struggle to adapt in turbulent markets.

1 of 2

Story summary

HSBC's pre-tax profit fell 25% to $9.5 billion in Q1, surpassing analyst forecasts.
The bank raised bad loan provisions to $876 million, citing geopolitical tensions and trade tariffs.
Revenue decreased 15% year-on-year to $17.65 billion, influenced by the sale of Canadian and Argentine operations.
HSBC plans a $3 billion share buyback, targeting completion before the 2025 interim results.
CEO Georges Elhedery highlighted the bank's resilience in a challenging economic environment.

1 / 2