HSBC reports first-quarter profit of $7.1 billion

HSBC announced that first-quarter profit rose by 4.4 percent to $7.1 billion, beating analysts’ expectations.

Europe’s largest bank, which is considering moving its base outside the UK, reported pretax profit of $7.1 billion, up from $6.8 billion last year.

According to Bloomberg, analysts expected pretax profit of $5.8 billion.

Adjusted revenue increased 4 percent to $15.4 billion, operating expenses climbed up 6 percent to $8.5 billion, and profit rose to $5.3 billion from $5.2 billion in the same quarter last year.

The company raised provisions for covering the cost of the payment protection insurance (PPI) scandal.

Its investment banking division performed significantly well, with markets income revenue posting an eight percent increase.

HSBC comments on first quarter performance

“Our business recovered well in the first quarter following a difficult fourth quarter in 2014,” Stuart Gulliver, group chief executive, said.

“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 UK and Hong Kong, and principal retail banking & wealth management generated increased revenue.”

“Loan impairment charges were significantly lower compared to the same period in 2014, particularly in Europe and North America.”