A view of the logo of HSBC bank on a wall outside a branch in Mexico City, Mexico, on June 14, 2024.<\/p>\n
Henry Romero | Reuters<\/p>\n
Europe’s largest lender HSBC on Wednesday missed second-quarter profit expectations, mostly on account of impairment charges, according to the bank. The bank also announced a share buyback of $3 billion.<\/p>\n
It reported profit before tax for the three months ended in June of $6.3 billion, down 29% from a year ago.<\/p>\n
Here are HSBC’s second-quarter 2025 results compared with consensus estimates compiled by the bank<\/a>.<\/p>\n Operating expenses rose by 10% compared to the same period a year ago, and were largely owed to restructuring and other related costs as well as from increased spending and investment in technology, the bank said.<\/p>\n The bank’s CEO Georges Elhedery flagged “structural challenges” to the global economy that have caused uncertainty and market volatility, citing “broad-based tariffs” and “fiscal vulnerabilities.”<\/p>\n “This is complicating the inflation and interest rate outlook creating greater uncertainty. Even before tariffs take effect, trade disruptions are reshaping the economic landscape,” Elhedery said.<\/p>\n HSBC is planning to terminate several employees in its equities team in its Germany office,\u00a0 as part of a broader effort to scale back its investment banking operations outside of Asia and the Middle East, Bloomberg reported last week.\u00a0<\/p>\n The move aligns with Elhedery’s push to revamp the investment bank. Last October<\/a>, HSBC announced a restructuring plan to split its operations into four divisions, creating separate “Eastern markets” and “Western markets” sectors. HSBC has said the reorganization will cut costs by about $300 million this year<\/a>.<\/p>\n\n