HSBC recovers well following tough 4Q14
(7 May 2015 – Global) HSBC has reported a profit before tax (PBT) of US$7.1 billion (A$8.9 billion) in 1Q15, up 4 percent than the same time a year ago.
The bank said in a statement adverse movements in foreign currency between the periods broadly offset the positive net movement in significant items.
Adjust PBT was up by US$349 million, or 5 percent in 1Q15 at US$6.9 billion, compared to US$6.5 billion in 1Q14, primarily reflecting higher revenue of US$661 million and lower loan impairment charges of US$136 million, partly offset by higher operating expenses of US$483 million.
HSBC Group chief executive Stuart Gulliver said the business recovered well in the first quarter following a difficult 4Q14.
“Global Banking & Markets had its usual strong start to the year, with a notable increase in year-on-year revenue in our Markets businesses.
“Commercial Banking continued to perform well, particularly in the United Kingdom and Hong Kong, and Principal Retail Banking & Wealth Management generated increased revenue,” Gulliver said.
“Loan impairment charges were significantly lower compared to the same period in 2014, particularly in Europe and North America.
“Adjusted operating expenses increased, as expected. We continue to work on initiatives to deliver cost-savings over the remainder of 2015 and beyond.
“We generated US$4.6 billion of capital from profit in the period which enabled us to fund the first interim dividend, strengthen the CET1 capital ratio, and support asset growth,” Gulliver said.
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