HSBC has reported a 14 percent drop in profits for the first quarter, hit by “extreme levels of volatility” in financial markets throughout January and February.

However, analysts had expected the fallout to be far worse for the bank, with chief executive Steve Gulliver commenting that it had been “resilient in tough market conditions”.

“Market uncertainty led to extreme levels of volatility in January and February, which affected our ability to generate revenue in our markets and wealth management businesses. However, our diversified, universal-banking business model helped to cushion the impact through growth in other parts of the bank,” he added.

Profit before tax stood at $6.1 billion for the three months to March, down from $7.1 billion a year ago. Its adjusted revenue for the first quarter amounted to $13.9 billion, a 4 percent drop from the same time last year.

 

Shares in HSBC have moved up on the news, currently trading up 2.50 percent at 463.75 (0811GMT).

03/05/2016