HSBC net profit falls 18pc in Q1, hit by volatility

AFP, HONG KONG:  HSBC’s net profit fell by a fifth in the first quarter as it was hit by “extreme levels” of volatility in world markets over January and February, with bad loan costs almost doubling.
Equity and currency markets from Asia to the Americas were sent into meltdown at the start of the year as a growth slowdown in China and plunging oil prices fanned concerns about the world economy.
But group chief executive Stuart Gulliver said: “Our first quarter performance was resilient in tough market conditions that affected the entire banking sector.”
The first two months of the year saw “reduced client activity” in foreign exchange and stocks, with a partial recovery in March, the bank said in its report.
In a statement to the Hong Kong stock exchange the banking giant said net profit fell 18 per cent to $4.3 billion while revenues were down four per cent at at $13.91 billion.
Charges for bad loans surged $692 million to $1.16 billion year on year, related to the oil and gas, and metals and mining sectors, Gulliver added, although he described the rise as “anticipated”.
However, pre-tax profits beat its own estimates, and bank chiefs said it was on track to reach cost targets after a radical overhaul announced last year.

HSBC net profit falls 18pc in Q1, hit by volatility

AFP, HONG KONG: HSBCs net profit fell by a fifth in the first quarter as it was hit by extreme levels of volatility in world markets over January and February, with bad loan costs almost doubling. Equity and currency markets from Asia to the Americas were sent into meltdown at the start of the year as a growth slowdown in China and plunging oil prices fanned concerns about the world economy. But group chief executive Stuart Gulliver said: Our first quarter performance was resilient in tough market conditions that affected the entire banking sector. The first two months of the year saw reduced client activity in foreign exchange and stocks, with a partial recovery in March, the bank said in its report. In a statement to the Hong Kong stock exchange the banking giant said net profit fell 18 per cent to $4.3 billion while revenues were down four per cent at at $13.91 billion. Charges for bad loans surged $692 million to $1.16 billion year on year, related to the oil and gas, and metals and mining sectors, Gulliver added, although he described the rise as anticipated. However, pre-tax profits beat its own estimates, and bank chiefs said it was on track to reach cost targets after a radical overhaul announced last year.