HSBC said that in the first three months of the year, the loan amount for client loans was $20 billion (£1.5 billion), “mainly driven by the continued growth in mortgage balances”.
The bank’s UK smoking cessation division’s pre-tax profit rose 3.2% to $1.7 billion, compared with a market statement a year ago.
However, the group warns that transactions may slow down due to global tariffs caused by U.S. policy.
“The macroeconomic environment is facing increased uncertainty, especially protectionist trade policies, which have caused volatility in economic forecasts and financial markets and have adverse effects on consumer and business sentiment,” it said.
The UK-based bank increased its expected credit losses by $222 million to $876 million in the first quarter of 2025, slightly higher than analysts’ estimates.
The debt clauses across the group have increased to $900 million, up from $200 million a year ago.
Overall, global banks made pre-tax profits of $9.5 billion during the period, down 25% from the net one-time earnings recorded in the same period last year related to their sales in Canada and Argentina.
The group announced a maximum of $3 billion in stock buybacks that will begin after the May 2 meeting.
“Our outstanding results this quarter demonstrate our revenue momentum, discipline in implementing strategies and confidence in our ability to achieve our goals,” said Group CEO Georges Elhedery.
