HSBC (LON:HSBA) announced a 31% rise in profit for its first quarter on Friday, driven by its operations in Asia.
HSBC, the leading banking and financial services organisation globally, reported a profit after tax that amounted to $4.9 billion, up 31%.
Additionally, reported revenue was up 5%, whilst adjusted operating expenses were up 3.2%.
HSBC’s reported operating expenses were down 12%, assisted by one-off sales in retail and commercial.
“These are an encouraging set of results, particularly in the context of heightened economic uncertainty globally. We remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy,” Group Chief Executive John Flint commented on the results.
HSBC said it had experienced particularly strong growth in Asia in spite of a softer rate and growth environment. Reported profit before tax for its Asia operations increased by 5% to $5 billion, with the region comprising 81% of HSBC’s overall profits.
It said it was progressing on its US turnaround, though this still remains HSBC’s most challenging strategic priority.
At the start of the year, HSBC revealed its financial results for 2018 in which it posted a fall in profits as a result of the economic downturn in China.
Elsewhere in banking, Deutsche Bank and Commerzbank recently abandoned talks of a merger, following shareholder concerns over the complexities of the decision.
Lloyds Bank’s (LON:LLOY) first quarter profits missed expectations, as pre-tax profits for the quarter remained unchanged from the same period a year prior.
The Bank of England announced only yesterday that it will be keeping interest rates on hold at 0.75%, following the stronger than expected performance of the UK economy. It said that it now expects growth of 1.5% this year, an increase compared to the 1.2% forecast in February.
Shares in HSBC Holdings plc (LON:HSBA) were up 2.25% as of 08:03 BST Friday.
