© Reuters. FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid/File Photo
By Selena Li and Lawrence White
HONG KONG (Reuters) -HSBC Holdings reported a 212% increase in quarterly profit on Tuesday, as it benefitted from rising interest rates around the world.
Europe’s largest bank posted a pretax profit of $12.9 billion for the first quarter ended March, versus $4.2 billion a year earlier.
The results were better than the $8.64 billion average estimate of 17 analysts compiled by HSBC.
HSBC’s headline profit was boosted by a reversal of a $2 billion impairment it took against the planned sale of its French business, reflecting the fact that the deal may no longer go through.
The bank said the planned $10 billion sale of its Canadian business, originally slated to complete by the end of this year, will now only likely go through in the first quarter of 2024.
That follows a warning the bank gave last month that its France disposal could be in jeopardy over regulatory capital concerns for the buyer.
The London-headquartered bank announced the first of a new cycle of buybacks along with the results of up to $2 billion.
It also announced a dividend of $0.10 per share, its first quarterly dividend since 2019.