Belfast Telegraph

HSBC hit by quarterly fall in its profits

By Ravender Sembhy

Profits at HSBC fell 19% in the first quarter after an accounting change hit the banking giant's bottom line.

The UK lender said the fall to $5bn (£3.8bn) reflected a change in the accounting of the fair value of its debt.

However, the figure was still ahead of expectations, and adjusted pre-tax profits rose 12% to $5.9bn (£4.5bn) as the bank was boosted by improved trading.

Adjusted revenue edged 2% higher to $12.8bn (£9.9bn), helped by growth in current accounts, savings and deposits.

The bank's shares rose 3.3% in morning trading yesterday.

Chief executive Stuart Gulliver said: "This is a good set of results. The increase in adjusted profit was driven by strong performances in three of our four global businesses."

Mr Gulliver also flagged progress on HSBC's cost-cutting programme, through which it aims to annually save around $6bn (£4.8bn).

Belfast Telegraph