Shares
in
HSBC
(HSBA)
rose
4%
on
Tuesday
as
the
bank
unveiled
a
new
buyback
and
special
dividend,
consensus-beating
results
and
announced
that
the
chief
executive
intends
to
step
down.
Noel
Quinn
informed
the
bank’s
board
of
his
intention
to
retire
from
the
bank
after
nearly
five
years
leading
the
company,
and
37
years
at
the
firm
in
total.
Quinn
said
he
plans
to
“pursue
a
portfolio
career”
going
forward.
Pretax
profit
was
$12.65
billion,
1.8%
lower
than
the
prior
year’s
$12.89
billion,
but
ahead
of
$12.61
billion
consensus.
HSBC
noted
the
figure
included
a
$4.8
billion
gain
following
the
disposal
of
its
Canadian
banking
business,
which
was
partially
offset
by
a
$1.1
billion
impairment
related
to
the
sale
of
its
business
in
Argentina.
First-quarter
net
interest
income
fell
3.4%
to
$8.65
billion
(£6.91
billion)
from
$8.96
billion
year
on
year,
though
came
in
higher
than
company-compiled
consensus
of
$8.50
billion.
Net
operating
income
increased
1.5%
to
$20.03
billion
from
$19.74
billion.
The
company’s
shares
rose
nearly
5%
to
just
below
700p
on
Tuesday.
In
dividend
news,
HSBC
said
it
has
approved
a
first
interim
payout
of
$0.10
per
share,
up
year
on
year
from
$0.09.
It
will
also
pay
a
special
dividend
of
$0.21
following
the
sale
of
its
Canadian
banking
business.
In
addition,
it
announced
a
new
share
buyback
of
up
to
$3
billion,
following
the
conclusion
of
the
$2
billion
buyback
announced
with
its
full-year
results.
“Our
good
profit
performance…in
the
first
quarter
has
enabled
us
to
continue
the
trend
of
rewarding
our
shareholders,”
said
chief
executive
Noel
Quinn.
Key
Morningstar
Metrics
for
HSBC
Stock
•
Fair
Value
Estimate:
850
GBX
•
Morningstar
Rating:
4
stars
•
Morningstar
Economic
Moat
Rating:
None
•
Morningstar
Uncertainty
Rating:
Medium
HSBC
Searches
for
a
New
CEO
HSBC
said
Quinn
has
informed
the
board
of
his
intention
to
retire
from
the
bank
after
nearly
five
years
leading
the
company,
and
37
years
at
the
firm
in
total.
Quinn
said
he
plans
to
“pursue
a
portfolio
career”
going
forward.
Chair
Mark
Tucker
said
praised
Quinn’s
“significant
contribution”
to
the
firm.
“He
has
driven
both
our
transformation
strategy
and
created
a
simpler,
more
focused
business
that
delivers
higher
returns.
The
bank
is
in
a
strong
position
as
it
enters
the
next
phase
of
development
and
growth,”
Tucker
said.
A
formal
process
to
find
Quinn’s
successor
has
begun,
with
HSBC
considering
both
internal
and
external
candidates.
Quinn
will
continue
as
CEO
during
the
process,
the
firm
said.
The
company
left
guidance
unchanged
from
that
provided
in
February
with
the
annual
results.
It
continues
to
target
a
return
on
average
tangible
equity
in
the
mid-teens
for
2024,
excluding
notable
items.
It
expects
banking
net
interest
income
of
at
least
$41
billion.
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