London-based HSBC reported a decline in its first-quarter pretax profit due to increased spending on investments. Chief Executive John Flint seems happy nonetheless.
HSBC pretax profit declined to $4.8 billion in the first quarter, down 4 percent from a year ago, according to a statement released on Friday. The bank said a 13 percent hike in expenses for investments to grow the business and enhance its digital capabilities had pushed up operating costs.
«Our global businesses performed well in the first quarter, maintaining momentum from the end of 2017,» said Chief Executive John Flint. This was Flint's first moment in the spotlight since Stuart Gulliver handed over the running of the bank to Mark Tucker and Flint in February 2018.
Private Banking Success
Adjusted pretax profit at the bank’s global private banking unit increased 53 percent to $113 million from $74 million for the corresponding period in 2017. Hong Kong was a major contributor to the positive figures in the unit.
The bank said it is involved in «active discussions» with the U.S. Justice Department on resolving civil claims and has set aside $897 million in relation to the U.S. probe on its sale of mortgage-backed securities.
