Financial services giant HSBC Holdings (NYSE:HSBC)(HK:0005)(GB:HSBA) delivered better-than-expected Q1 sales, profit before tax (PBT), and earnings per share. In addition to the earnings results, the firm also announced the retirement of its current CEO, Noel Quinn. Quinn plans to leave the firm after holding the position for nearly five years.
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HSBC stock was trading about 2.5% higher on the London Stock Exchange at the time of this writing. Overall, the stock is up about 12% year-to-date.
HSBC – Q1 Performance
HSBC delivered revenue of $20.8 billion, up 3% year-over-year. Moreover, it surpassed Wall Street’s forecast of $16.94 billion. The higher revenues reflect increased customer activity in the company’s wealth products, equities, and securities financing.
However, its net interest income fell by $0.3 billion due to the deposit migration. Nonetheless, non-interest income increased by $0.9 billion due to increased trading income.
Meanwhile, HSBC’s profit before tax came in at $12.65 billion, down 1.8% year-over-year. However, it exceeded analysts’ average estimate of $12.61 billion.
HSBC Is Looking for Quinn’s Successor
Quinn’s impending retirement has prompted the company’s Board to search for a successor. HSBC is evaluating candidates from within the company and externally. For now, Quinn will continue serving as group CEO, ensuring a smooth transition process.
During Quinn’s tenure, HSBC underwent a notable transformation marked by the divestment of non-core operations and a strategic shift towards high-value international markets. This strategic move helped the company improve its profitability and return more cash to its shareholders through buybacks and dividend payments.
Is HSBC a Good Stock to Buy?
Analysts are cautiously optimistic about HSBA stock. It has eight Buys, five Holds, and one Sell recommendation for a Moderate But consensus rating. Analysts’ average price target on HSBA stock is 760.73p, which implies 11.19% upside potential from current levels.
The U.S.-listed shares of HSBC currently do not have any analysts’ ratings. Hence, let us look at the ratings for UK-listed shares of this financial services giant.
