HSBC has recorded a 2.3% decrease in its profit before tax, reaching $12.7bn (£10.1bn) after expectations predicted earnings of $12.6bn (£10bn).

The bank also saw its net operating income reach $20.8bn (£16.6bn), after it predicted this figure would reach $21bn (£16.75bn).

Operating expenses reached $8.2bn (£6.54bn) in the first quarter, an increase of 7% on the same period in 2023.

HSBC suggested this was primarily due to continued investment in technology, the impact of inflation and a higher performance-related pay accrual, which reflected a change in the expected quarterly phasing of the performance-related pay pool in Q1 2023.

Group chief executive at HSBC, Noel Quinn, said: "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 of $12.7bn in the first quarter has enabled us to continue the trend of rewarding our shareholders.

"We have announced a total of $8.8bn of distributions, consisting of a first interim dividend for 2024 of $0.10 per share, a special dividend of $0.21 per share from the Canada sale proceeds, and a new share buy-back of up to $3bn. Our 2024 guidance remains unchanged, including a mid-teens return on average tangible equity and continued cost discipline."

The results were published alongside Quinn’s announcement that he is set to retire, and will stay on in the role until a replacement has been found.

Quinn has worked at the bank for 37 years and was appointed CEO on an interim basis in 2019, before taking on the permanent position a year later.

Equity analyst at Hargreaves Lansdown, Matt Britzman, added: "HSBC has thrown a spanner in the works. News that CEO Noel Quin plans to retire came as a surprise. Change at the top usually causes a wobble, more so when it's unexpected, and this does raise some questions about how the strategy will evolve from here. The HSBC portfolio is going through a reshuffle, and Quinn’s far from completing his mission to get costs under control.

"He took the reins just as the pandemic was spreading across the world, a hugely uncertain time to lead a global bank and pivot away from its more traditional markets. He’s also had to navigate geopolitical tensions between the US and China, political unrest in Hong Kong, and plenty of shareholder challenges. He may be a hard act to follow, but market reaction suggests the strong position he leaves behind is enough to quell any uncertainty about who’ll lead the business from here."

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