HSBC Holdings PLC on Tuesday announced its chief executive intends to step down, as it unveiled a new buyback and special dividend alongside first-quarter results.

The London-based, Asia-focused lender said first-quarter net interest income fell 3.4% to $8.65 billion from $8.96 billion year-on-year, though came in higher than company-compiled consensus of $8.50 billion. Net operating income increased 1.5% to $20.03 billion from $19.74 billion.

Pretax profit was $12.65 billion, 1.8% lower than the prior year’s $12.89 billion, but ahead of $12.61 billion consensus. HSBC noted the figure included a $4.8 billion gain following the disposal of its Canadian banking business, which was partially offset by a $1.1 billion impairment related to the sale of its business in Argentina.

HSBC said it has approved a first interim dividend of $0.10 per share, up year-on-year from $0.09. It will also pay a special dividend of $0.21 following the sale of its Canadian banking business. In addition, it announced a new share buyback of up to $3 billion, following the conclusion of the $2 billion buyback announced with its full-year results.

‘I’m pleased with our start to 2024. We completed the sale of our Canada business and agreed the sale of our Argentina business, both of which allow us to focus on markets with higher value international opportunities. Our good profit performance...in the first quarter has enabled us to continue the trend of rewarding our shareholders,’ said Chief Executive Noel Quinn.

HSBC said Quinn has informed the board of his intention to retire from the bank after nearly five years leading the company, and 37 years at the firm in total. Quinn said he plans to ‘pursue a portfolio career’ going forward.

Chair Mark Tucker said the bank was ‘very grateful’ for Quinn’s ‘significant contribution’ to the firm.

‘He has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns. The bank is in a strong position as it enters the next phase of development and growth,’ Tucker said.

A formal process to find Quinn’s successor has begun, with HSBC considering both internal and external candidates. Quinn will continue as CEO during the process, the firm said.

The company left guidance unchanged from that provided in February with the annual results. It continues to target a return on average tangible equity in the mid-teens for 2024, excluding notable items. It expects banking net interest income of at least $41 billion.

Shares in HSBC were up 1.5% at HK$66.50 in Hong Kong on Tuesday afternoon, ahead of the London market open.

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