HSBC defies expectations with $3 billion buyback despite falling profits
- HSBC reported first-quarter results for 2025, beating profit estimates despite a decline in year-on-year performance.
- Porsche lowered its full-year outlook, partially due to the effects of U.S. tariffs on its business.
- European markets opened mixed as investors continue to assess the implications of earnings reports and ongoing trade uncertainties.
On April 29, 2025, European markets showed signs of a mixed opening as investors evaluated corporate earnings amid ongoing uncertainties from U.S. tariffs. In the early hours, HSBC, one of Europe's largest banks, reported its first-quarter results for 2025, exceeding estimates for profit but revealing a significant decline in both profit and revenue on a year-on-year basis. The bank's profit before tax was reported at $9.48 billion, surpassing consensus estimates of $7.83 billion, while its revenue reached $17.65 billion, exceeding expectations of $16.67 billion. However, this represented a 25% decline in profit and a 15% drop in revenue compared to the previous year. HSBC also announced a share buyback plan amounting to up to $3 billion, aimed to be completed before its interim results in 2025 are announced. This move reflects the bank's strategy to return capital to shareholders even amid a challenging economic environment. In light of these developments, Porsche lowered its full-year sales and profit margin forecasts, attributing part of the downturn to the impact of U.S. tariffs. The German automaker now expects its sales revenue to fall between €37 billion and €38 billion for the 2025 financial year, down from a previous forecast of €39 billion to €40 billion. With first-quarter results for various companies, including Porsche, scheduled for later in the day, the market remains sensitive to information that could influence overall investor sentiment and economic outlook in Europe. As the European trading session progresses, indices initially hinted at gains. The U.K.'s FTSE 100 was forecasted to rise, along with Germany's DAX, although France's CAC 40 was anticipated to open lower. Investors continue to monitor developments in the U.S.-China trade negotiations, as these factors have been a significant source of uncertainty affecting industries globally. The mixed opening for European stocks reflects the broader context of fluctuating market conditions, driven by earnings reports and geopolitical tensions directly linked to tariffs and trade policy. In the Asia-Pacific region, markets were generally posting gains ahead of earnings announcements from major U.S. companies. U.S. stock futures also hovered near-flat, indicating cautious optimism as Wall Street prepared for its own busy earnings week. Deutsche Bank highlighted that earnings from large technology firms this week could be crucial in setting the market's tone, reiterating the interconnectedness of these corporate results with the current economic landscape influenced by tariffs and international trade relationships.