Fourteen percent drop in HSBC Q1 profits
(3 May 2016 – United Kingdom) HSBC has reported a 14 percent drop in profits following "extreme levels of volatility" for the first quarter of 2106.
The bank’s profit before tax totalled £4.17 billion (A$8.08 billion) for the period, down from £4.88 billion a year ago.
HSBC chief executive Stuart Gulliver said the bank had been "resilient in tough market conditions".
Adjusted pre-tax profits, including currency effects and one-off items, fell 18 percent to £3.7 billion.
In a bid to reduce costs, the bank cut around 1000 jobs worldwide in the first quarter. Gulliver said the he was confident of hitting a £3.5 billion target by the end of next year.
In the final three months of 2015, HSBC had reported a loss of £589 million, but lower compliance and UK bank levy costs helped it to return to profit in the latest quarter.
HSBC's adjusted revenue for the first quarter amounted to £9.5 billion, a 4 percent drop from the same time last year.
The bank also said it was steadily building its business in Asia, "despite a challenging environment with key increases in market share in debt capital markets, China M&A and syndicated lending".
Subscribe