HSBC does the business with solid Q1 outcome

Banking major HSBC has posted better-than-expected profits underpinned by the performance of its retail banking and wealth management operations.

HSBCs core businesses delivered solid performances in the first quarter. Picture: Contributed

Europe’s biggest bank saw net profit jump 33.7 per cent to $4.13 billion (£3.1bn) in the first three months of the year, ahead of analysts’ expectations of about $3.7bn.

London-listed HSBC said its retail banking and wealth management arms generated a “significant increase” in revenue on the back of higher lending and deposit balances, particularly in the UK and Hong Kong.

Commercial banking notched up a double-digit increase in revenue, while global banking and markets adjusted revenue was also higher.

Chief executive John Flint said: “These are an encouraging set of results, and we remain focused on executing the strategy we outlined last June. At the same time, we remain alert to risks in the global economy.

“We are proactively managing costs and investment in line with this more uncertain outlook, and will continue to do so.”

Nicholas Hyett, equity analyst at Hargreaves Lansdown, noted: “HSBC’s core businesses delivered solid performances in the first quarter, putting overall numbers comfortably ahead of market expectations.

“That’s been driven by the bank’s ability to keep costs low while growing revenues, and still investing $1bn in growth initiatives – that might not be the most exciting assessment of a bank’s results you’re ever going to get, but it’s good news for HSBC’s shareholders nonetheless.”