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HSBC Says More Buybacks ‘Unlikely’ After Capital Ratio Miss

  • CET1 ratio falls to 14.1%, down from 15.8% at end of 2021
  • Lender reports lower than expected credit loss provisions
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WATCH: Ewen Stevenson, CFO of HSBC Holdings PLC, discusses first quarter earnings, the business in China and China’s real estate sector. 

Source: Bloomberg

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HSBC Holdings Plc said more share buybacks were unlikely this year as a drop in a key measure of its capital strength took the shine off better-than-estimated earnings in the first three months of the year.

The London-based bank posted a 25% drop in adjusted pretax profit from a year earlier, a smaller slide than analysts predicted as it reported earnings Tuesday. That was helped by lower-than-expected credit loss provisions, with a rise in lending volumes also helping offset lower revenue at its wealth unit that was hampered by Covid restrictions in Hong Kong.