HONG KONG: HSBC Holdings PLC smashed forecasts with a 31% rise in first quarter profit, bolstered by a surge in income from its core Asian business and lower costs that outweighed a poor performance from investment banking.
Profit before tax rose to US$6.21 billion from US$4.76 billion in the same quarter last year, above the US$5.58 billion average of analysts’ estimates compiled by the bank. HSBC said it would update investors on the potential for returning more capital to shareholders when it reports half-year results in June, with further share buybacks expected.
HSBC’s stock traders did particularly badly, with revenues tumbling 34 excluding a favourable one-off provision, the worst performance of an equities business in the quarter among major US and European banks. HSBC saw some improvement in its merger and equity advisory rankings in the first quarter, according to Refinitiv data.
HSBC warned in February it might have to delay some investments this year as it missed 2018 profit forecasts due to slowing growth in its two home markets of China and Britain.