HSBC’s Wealth business experienced an 18 per cent year-on-year increase in income to $1.7bn in the first quarter of 2025, its Q1 earnings release has revealed.

The increase was partially driven by growth in HSBC’s Global Private Banking business, which saw its income rise by 34 per cent over the year.

Despite the improved income, HSBC’s International Wealth and Premier Banking (IWPB) business experienced a slight fall in profit before tax, down from $1.192bn to $1.188bn.

Overall, its IWPB business’s fee and other income rose by 24 per cent year-on-year to $1.82bn in Q1 2025, while its revenue increased slightly from $3.496bn to $3.511bn.

However, its banking net interest income fell by 14 per cent to $1.706bn between Q1 2024 and Q1 2025.

HSBC said it expected double-digit percentage average annual growth in fee and other income in its Wealth business over the medium term.

The bank’s overall pre-tax profit fell by $3.2bn to $9.5bn year-on-year, primarily due to the non-recurrence of $3.7bn in net impacts in Q1 2024, relating to the disposals of its banking business in Canada and its business in Argentina.

Commenting on the update, HSBC group CEO, Georges Elhedery, said: “Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy and confidence in our ability to deliver our targets.

“We continue to support our customers through this period of economic uncertainty and market unpredictability, which we enter from a position of financial strength.”

Quilter Cheviot financials analyst, William Howlett, added: "HSBC’s results show a stronger-than-expected start to the year. Revenue growth was solid across the business, particularly in wealth management and transaction banking, even as net interest income dipped slightly.

"Although some of the headlines this morning have focused on wider global risks and cautious outlook comments, HSBC’s underlying numbers are reassuring. The bank estimates any potential impact from new tariffs would be small and manageable, and loan losses were in line with expectations, despite additional charges relating to a more negative economic outlook.

"Underlying costs rose 3.5 per cent compared to last year, largely due to ongoing investment in technology, but remained better than anticipated thanks to restructuring savings. Meanwhile, the bank’s core capital ratio – a key measure of financial strength known as the CET1 ratio – dipped slightly to 14.7 per cent but remains comfortably within its target range.

"Shareholder returns also continued, with a dividend and an additional $3bn share buyback announced. Overall, despite some market nervousness, HSBC’s results paint a picture of a bank that is performing well operationally and managing risks carefully, even against a more uncertain global backdrop."

---