HSBC Registers Decline in Profit and Revenue in Q1 2022

HSBC Holdings plc (HSBC) has published its financials for the first quarter of 2022, revealing a jump in profit and revenue.

More specifically, the reported profit after tax for this quarter came in at $3.4 billion, and reported profit before tax stood at $4.2 billion. Adjusted profit before tax reached $4.7 billion. All regions profitable in Q1 2021. Asia contributed $2.8 billion to Group reported profit before tax, while HSBC UK contributed $1.2 billion. 

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Moreover, the reported revenue down to $12.5 billion, and adjusted revenue down to $12.5 billion. The bank registered a net interest margin of 1.26%, increased 5 basis points (bps) compared with Q1 2021, and by 7bps compared with Q4 2021. Reported ECL rose $0.2 billion to $0.6 billion. 

Additionally, the bank also posted an decrease of 3% and 2% respectively in reported operating expenses and adjusted operating expenses. Customer lending balances up $9 billion in the quarter on a reported basis and $21 billion on an adjusted basis. Common equity tier 1 (CET1) capital ratio was 14.1%, down 1.7 percent compared to Q4 2021.

As Fazzaco previously reported, HSBC has increased its ownership stake​ in its Chinese securities venture, HSBC Qianhai Securities, from 51 to 90 percent, making it the latest foreign bank to seek greater control of its onshore business. HSBC's JV partner, Qianhai Financial Holdings, will retain a 10 percent stake in the venture. The value of the stake sale was not disclosed.