Beautiful Virgin Islands

Wednesday, Aug 27, 2025

HSBC pauses share buyback amid economic uncertainty

HSBC pauses share buyback amid economic uncertainty

The group’s net interest income is being buoyed by rising interest rates and a very active housing market.
HSBC announced on Tuesday it would halt stock buybacks for the year following disappointing financial results, triggering a 3.6% drop in its share price.

The bank blamed a perfect storm of tensions in Eastern Europe, soaring inflation, and economic uncertainty for the move to shore up its finances.

These factors, among others, impacted HSBC’s core capital ratio, an important metric in measuring a bank’s health, which fell by 1.7 percentage points to 14.1% from the end of 2021.

The bank’s capital is expected to take a further hit later this year when it sells off its French high street banking division at a loss of around £2.13bn ($2.7bn).

But elsewhere, things appeared more positive for HSBC - it reported a pre-tax profit of £3.29bn ($4.17bn) for the first quarter ending on March 31, beating analysts estimates.

Meanwhile, the Asia-focused but UK-based bank saw a £30.43bn ($38.6bn) increase in reported loans and advances to customers, totalling $1.1tn in the first quarter.

The lender is being closely watched as an indicator of the global financial system’s overall health, said one analyst.

“HSBC’s results have been long awaited and seen as a bellwether for the global economy,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“In an unsurprising turn of events, the group’s net interest income is being buoyed by rising interest rates and a very active housing market, especially in the UK. Total mortgage lending is up a huge $24bn (£18.92bn) year-on-year,” Ms Lund-Yates said.

“The macro environment has been factored into a positive outlook for interest income, but the raising of interest rates is only one consideration. While this helps interest income rise, the wider global economic outlook is much harder to predict.”

In February, the bank revealed that annual profits had more than doubled in 2021, but that it was battling challenges on several fronts in its key Chinese market.

HSBC warned that China's 'zero-COVID' measures to control the disease in Hong Kong were hurting the economy.

It added that it had released $900m in cash it had put aside in case pandemic-related bad loans spiked - which never materialised.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×