Fair-value losses shave 50bp off HSBC’s CET1 ratio

Further buybacks in the latter part of 2022 unlikely as core ratio falls close to bank’s own guidance

Soaring yields since the start of the year have caused a pre-tax loss of $4.9 billion to HSBC’s mark-to-market debt portfolio, shaving 50 basis points off the bank’s Common Equity Tier 1 (CET1) capital ratio.

The bank reported a pre-tax $3.9 billion markdown on fair-valued debt securities for the first quarter, equating to a 40bp decrease in the CET1 ratio once the loss filtered to capital through accumulated other comprehensive income (AOCI). Between March 31 and April 19, the figure had

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