Arab Today, arab today hsbc profit drops on market volatility
Last Updated : GMT 06:04:40
Arab Today, arab today
Arab Today, arab today

While bad loans doubled

HSBC profit drops on market volatility

Arab Today, arab today

Arab Today, arab today HSBC profit drops on market volatility

HSBC's net profit was down 18% at $4.3 billion in the first quarter
London - Arab Today

HSBC on Tuesday said its net profit fell almost a fifth in the first quarter, with Europe's biggest bank hit by "extreme levels" of markets volatility, while bad loans doubled.

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.

In comments included in the earnings statement, HSBC chief executive Stuart Gulliver said the group's performance in the January-March period "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, added the British bank that is focused on Asia.

HSBC said its net profit fell 18 percent to US$4.3 billion (3.7 billion euros) in the first quarter compared with one year earlier, while revenues were down four percent at almost $14 billion.
Bad loans surged $692 million to $1.16 billion year-on-year, related to the energy and mining sectors. 

HSBC shares rose however, with traders welcoming the group's better-than-expected pre-tax result. The bank added that it was on track to reach cost targets after a radical overhaul announced last year. 

"It’s tough out there for banks, and HSBC is no exception, particularly seeing as it is increasingly focusing its business on Asia, which is a weak market right now," said Laith Khalaf, senior analyst at London-based stockbrokers Hargreaves Lansdown. 

"However... things weren't quite as bad at HSBC as investors had feared."

Although pre-tax profits were down 14 percent at $6.1 billion, the result beat analysts' consensus forecast of $4.3 billion.

In early London deals, HSBC's share price was up 0.3 percent at 454 pence. The capital's benchmark FTSE 100 index was down 0.6 percent overall.

HSBC last year announced a radical overhaul to cut costs that included shedding 50,000 jobs worldwide, exiting unprofitable businesses and focusing more on Asia.
Gulliver said there was growing momentum in the bank's Asia businesses, with "strong business wins" after HSBC's investment in the region. 

But, like many global banks, it has continued to face turmoil in global financial markets, while stricter regulations have driven up costs.

"One of the headwinds HSBC has been battling is a deterioration of its loan book, with impairment costs doubling from last year, led by problems with borrowers in the energy and mining sectors," said analyst Khalaf.

- US probe -

HSBC meanwhile revealed in February that it is one of the banks being investigated by the US Securities and Exchange Commission in relation to its hiring practices in Asia-Pacific.

It came as the bank tried to move beyond recent scandals, including the rigging of foreign exchange markets.

Last month HSBC distanced itself from the Panama Papers leaks, which listed the bank as one of the institutions that helped set up the most offshore accounts. 

The trove of documents from Panama-based law firm Mossack Fonseca revealed the vast extent of global tax evasion, putting the spotlight on how politicians and tycoons manage their money.

HSBC meanwhile announced earlier this year that it would keep its headquarters in London, despite concerns about growing regulation in Britain and an upcoming vote on whether it should leave the European Union.

Soure: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hsbc profit drops on market volatility Arab Today, arab today hsbc profit drops on market volatility

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hsbc profit drops on market volatility Arab Today, arab today hsbc profit drops on market volatility

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq's Barzani isolated by his drive

GMT 04:36 2017 Tuesday ,24 October

Iraq's Barzani isolated by his drive
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU targets German carmakers

GMT 05:41 2017 Tuesday ,24 October

EU targets German carmakers
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 05:54 2017 Tuesday ,24 October

Second Palestinian mobile provider enters Gaza

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday