HSBC lifts bad loan provisions, unveils $3bn buyback as Q1 profit falls

(Sharecast News) - Asia-focused bank HSBC on Tuesday lifted its bad loan provisions in the first quarter, blaming a bleak macroeconomic outlook from higher tariffs and geopolitical tensions as it also announced a $3bn share buyback. The lender said it now expects credit losses of $876m, an increase of $202m, with $100m set aside to cover Hong Kong's commercial property sector.

Pre-tax profits were down by a quarter to $9.5bn in the first three months of the year, better than analyst expectations of $9.1bn. Last year's $12.7bn was boosted by one-off gains related to the sales of its Canada and Argentina operations.

Net interest income fell to $8.3bn from $8.7bn, reflecting lower rates.

"The macroeconomic environment is facing heightened uncertainty, in particular from protectionist trade policies, creating volatility in both economic forecasts and financial markets and adversely impacting consumer and business sentiment," the bank said.

Reporting by Frank Prenesti for Sharecast.com