(11 May 2012 – Global) A larger tax bill and higher insurance claims and liabilities has resulted in HSBC’s first-quarter net profits falling by 38 percent.For the three months to 31 March, HSBC reported on Tuesday a net profit of US$2.58 billion (A$2.54 billion) for the period, down from US$4.15 billion a year earlier. Operating income was flat at US$20.44 billion.
The bank said its tax bill rose from US$491 million a year ago to US$1.39 billion in the first quarter and insurance claims and liabilities increased by US$836 million.
‘We continued to make good progress in implementing our strategy, with 11 transactions to dispose of or close businesses announced since the start of 2012, and we continued to position the business for growth with increased revenues in Hong Kong, Latin America and the rest of Asia-Pacific against the previous quarter,’ chief executive Stuart Gulliver said.
The number of full-time equivalent employees at the end of the quarter was 285,000, down 3500 from the previous quarter, the bank said.