HSBC announces $3 billion share buyback amid profit decline

On April 29, 2025, HSBC Holdings plc, headquartered in the United Kingdom, revealed its first-quarter financial results, exceeding market expectations. The bank reported a profit before tax of $9.48 billion, which, although lower by 25% on a year-on-year basis, showcased a significant improvement of 317% from the previous quarter. Revenue figures also fell, declining to $17.65 billion from $20.75 billion the previous year. Along with the financial disclosures, HSBC announced a share buyback program worth up to $3 billion, expected to complete before the release of interim results later in 2025. Luke Manyi, an equity research analyst with DBS Bank, emphasized the importance of HSBC's wealth management and corporate banking performance in this turnaround, despite the ongoing challenges in the macroeconomic environment. The bank underlined cautious optimism regarding ongoing restructuring efforts that promise to yield cost savings. However, HSBC highlighted growing uncertainties related to global trade, including the potential negative impacts of protectionist policies and tariffs, especially those imposed by the United States on steel, aluminum, and automotive sectors since March. These uncertainties could dampen consumer and business confidence. Despite recent successes, such as beating profit estimates, the effects of the U.S. tariffs and other international economic dynamics remain a concern, which could lead to more pronounced effects in upcoming quarters. Manyi advised investors to observe any adjustments in HSBC's forecasts that could arise due to tariff-related uncertainties which could directly influence the financial metrics moving forward, especially concerning the ASEAN region tariffs following a grace period. In this context, HSBC's CEO Georges Elhedery, who along with other bank leaders, is advocating for changes to UK banking regulations aimed at enhancing economic performance, stressed the importance of their current strategic direction. The bank’s decision to implement a share buyback reflects a confident positioning amidst these challenges, while acknowledging the structural headwinds posed by international trade dynamics yet remaining focused on internal efficiencies and growth arrangements.