HSBC Costs and Conduct Charge Overshadow $2 Billion Buyback
- Shares fall as first-quarter expenses rise faster than revenue
- New CEO John Flint says job like ‘drinking from a fire hose’
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John Flint is off to a bumpy start at HSBC Holdings Plc.
Costs at Europe’s largest bank rose at a quicker pace than revenue in the first quarter and it took a surprise charge for past misconduct. HSBC also said a $2 billion share buyback would be the only one this year given the “growth opportunities,” signaling the bank plans to reinvest the excess capital rather than return it to investors. Some analysts had expected $4 billion or more to be repurchased.