Pre-tax profit dropped in the first quarter for British lender HSBC Holdings Plc compared to the same period of the previous year, the bank reported on Tuesday.
HSBC reported that its first-quarter profit before tax dropped to $12.65 billion from last year's $12.89 billion.
Profit after tax was $10.84 billion, compared to $11.03 billion a year ago.
However, earnings per share grew to $0.54 from last year's $0.52 on lower share count.
The latest results included a $4.8 billion gain following the completion of the disposal of banking business in Canada, partly offset by a $1.1 billion impairment following the classification of business in Argentina as held for sale.
The reduction in profit before tax also reflected the non-recurrence of a $2.1 billion reversal last year of an impairment relating to the sale of retail banking operations in France, and a $1.5 billion gain recognized last year on the acquisition of Silicon Valley Bank UK Limited.
Basic earnings per share excluding material notable items and related impacts were $0.34, compared to $0.36 last year.
Net operating income, however, grew to $20.03 billion from $19.74 billion a year ago.
Net operating income before change in expected credit losses and other credit impairment charges was $20.75 billion, compared to $20.17 billion a year ago.
Net interest income of $8.7 billion fell by $0.3 billion from last year, primarily reflecting deposit migration.
Non-interest income increased.Net interest margin of 1.63% decreased by 6 basis points.
Further, the board has approved a first interim dividend of $0.10 per share.
In addition, following the completion of the sale of banking business in Canada, the board has approved a special dividend of $0.21 per share, payable in June 2024, alongside the first interim dividend.
The company further said it now intends to initiate a share buy-back of up to $3 billion, to commence shortly after the annual general meeting in May 2024.
Looking ahead for fiscal 2024, the company continues to expect Banking net interest income of at least $41 billion, lower than $44.1 billion recorded in fiscal 2023.
In Hong Kong, HSBC shares were trading at HK$65.50, down 0.1%.