SINGAPORE/LONDON :HSBC Holdings posted a 27 per cent drop in quarterly profit on Tuesday and nixed the possibility of more buybacks this year, while it blamed rising inflation and economic uncertainty due to the Russia-Ukraine conflict for denting its prospects.
The results, however, beat the $3.72 billion average estimate of 16 analysts compiled by HSBC, which earns about two-thirds of its reported pretax profit from Asia. The increased ECL primarily reflects the direct and broader economic impacts of the Russia-Ukraine conflict and inflationary pressures on the forward economic outlook, it added.
The lender, however, dealt a blow to shareholders by saying further buybacks, which it has in recent years used as a means of returning excess capital to investors, would be unlikely this year. It blamed volatility in the value of some investments it holds as hedges against dips in interest income.