[ad_1]
HSBC said its first-quarter net profit rose 79 percent as reserves for bad loans fell and the economic outlook improved over a year as a result of the coronavirus pandemic, which partially offset the success of low interest rate revenues.
Net profit before tax was $ 5.8 billion in the three months to March 30, the bank said on Tuesday, much higher than analysts forecast of $ 3.3 billion. Revenue fell 5 percent to $ 13 billion, roughly over the forecast of about $ 12.6 billion.
“The economic outlook has improved, although uncertainties remain,” said CEO Noel Quinn. “We have a good boost in the second quarter, maintaining conservative positions on capital, financing, liquidity and credit.”
Reserves for projected credit losses also continued to fall from the peak in 2020. The bank released a $ 400 million provision for borrowing during the pandemic, down from a $ 3 billion charge in the first quarter of last year. Loss of $ 600 million loan linked to a Singapore oil trader researching because the previous period also weighed on the fraud.
HSBC is at the center of a $ 100,000 billion risk-weighted asset diversion program from weak companies in Europe and the U.S. to Asia, primarily in wealth and asset management. It has also pledged to cut $ 5 billion in annual costs and eliminate $ 35,000 from jobs, as very low interest rates cut billions of dollars a year from revenue.
HSBC said on Tuesday it was continuing negotiations for sale Although no decision had been made by the French retail banking division. The UK-based bank is in negotiations to sell its 230 branches in France to private capital Cerberus.
While the bank has become a political purse in the US-China trade war and the future of Hong Kong, Quinn recently told the Financial Times not “flip flops” each time tensions arose in strategy.
First quarter earnings immersed in the middle last year the bank increased its reserves for bad loans by five times, as the pandemic forced unprecedented global blockades, creating fears about the stability of the financial system.
Although the forecasts for the end of 2020 were clarified, HSBC’s full-year pre-tax profits are still there it fell by 45 per cent.
[ad_2]
Source link
