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• Tensions in the Chinese real estate market, Ukraine, and inflation in Asia have dented the income
HSBC Holdings reported a dip in its revenue and lowered its net income expectations for the first quarter of 2022, as compared to a year ago, due to declining growth in Hong Kong.
The quarterly pre-tax profit of the Asia-focused bank dropped by 27%, falling from $5.78 billion last year, to $4.2 billion for the first quarter ended March 2022.
The first-quarter profit after tax was reported as $3.44 billion or $0.14 per share compared to $4.57 billion or $0.19 per share last year.
The bank’s revenue fell 4% to $12.5 billion, falling just short of the $12.7 billion forecast.
The drop was attributed in part to a $600 million charge for expected credit losses due to the Russian invasion and a slowdown in the Chinese real estate sector.
The bank’s crucial capital ratio fell to 14.1%, as compared to 15.8% at the end of 2021.
Ever since the bank’s stock hit a 25-year low in September 2020, it has recovered 85% of the lost value but has still lost a fifth of its value in the past three years.
HSBC shares fell as much as 4.1% in London and 5.5% in Hong Kong.
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Source: HSBC Holdings