HSBC’s profit in Asia fell more than a quarter in the first three months of 2022 as stringent Covid restrictions limited activities in the region.
HSBC posted a pre-tax profit of $2.8 billion in Asia, according to the bank's first quarter results, down 25.4 percent compared to $3.8 billion in the same period last year.
This was driven in part by a «muted» wealth business in Hong Kong – the bank’s largest market – where investment distribution revenue fell lower in the quarter.
On top of risks from the Russia-Ukraine war, the bank also increased its expected credit losses (ECL) due to tighter Covid-related restrictions in Asia alongside additional allowances for the commercial real estate sector in mainland China.
Overall, the bank registered a pre-tax profit of $1.6 billion worldwide, down 28.1 percent year-on-year.
