As it fights to rehabilitate flagging revenues following its restructuring, HSBC has reported a fall in its first quarter profit.
HSBC said pretax profit for the first three months of the year fell to $5 billion, down from $6.1 billion a year ago, however it was better than the $4.3 billion average of analysts' estimates compiled by the bank.
In February the London based but Asian centric bank, reported a much worse than expected set of full year results for 2016, marred by hefty writedowns and costs from its restructuring efforts.
The bank claims the profit drop was due to a change in the accounting treatment of the fair value on its debt as year-ago earnings included the operating results of the Brazil business that it sold in July 2016.
Asian Pivot Supports
In a statement to the Hong Kong stock exchange Stuart Gulliver, HSBC’s group chief executive, called the figures «a good set of results»
Revenue in the quarter dropped 13 percent to $13 billion. The bank said it completed its $1 billion share buy back in April, after which its common equity tier 1 ratio, a measure of its financial strength, was 14.3 percent.
Insurance sales grew by 13 percent in Asia, and assets under management increased by 15 percent, HSBC also launched new insurance products in China, and generated further business around the China-led Belt and Road initiative.
«Our pivot to Asia continues. We increased advances to customers and grew mortgages and business lending in the Pearl River Delta», Gulliver added.
More to follow
