HSBC saw first quarter profits more than double versus the year ago period, boosted by a reversal in its credit losses, profits across all major divisions, and with its European and US operations back in the black.
For the three months to 31 March, the lender posted adjusted pre-tax profits of $6.4bn. That compared positively to the $4.3bn anticipated by the analyst consensus.
Commenting on the results, HSBC boss, Noel Quinn, said: “Global Banking and Markets had a good quarter, and we saw solid business growth in strategic areas, including Asia wealth and trade finance, and mortgages in Hong Kong and the UK.”
The lender benefitted from a $400m reversal in credit losses and predicted that in 2021 they would fall below the expected medium-term range of 30 to 0 basis points.
Its chief financial officer meanwhile said the lender would increasingly be run as a dual-hub between Hong Kong and London, albeit with a shift of more capability towards Asia a “clear strategic priority”.
Operating expenses were driven higher by restructuring charges linked to its 35,000 person redundancy programme in the wake of the pandemic and performance-based pay.
As of 0716 BST, Hong Kong-listed shares of HSBC were up 1.88% to HKD45.95.
