HSBC rebounds with 79% surge in quarterly profit
HSBC has reported an increase of 79% in first quarter profits compared to the same quarter in 2020.
Europe's biggest bank by assets reported profit before tax of $5.78bn, up from $3.21bn a year ago.
The bank also tipped improved conditions ahead, with growth in customer lending in 2021.
It's a major turnaround for Europe's biggest lender, which posted a 34% drop in profits for 2020, partly due to the impact from Covid-19.
"Global Banking and Markets had a good quarter, and we saw solid business growth in strategic areas, including Asia Wealth and trade finance, and mortgages in Hong Kong and the UK.
"We also strengthened our lending pipelines in our retail and wholesale businesses," said Noel Quinn, the Group chief executive said in the earnings release.
The bulk of the bank's before-tax profits came from Asia, where HSBC made $3.8bn.
The bank said it was profitable in all regions, with its UK business reporting pre-tax profits of $1bn.
HSBC also released $400m of provisions for bad debts amid the pandemic, compared with a $3bn charge last year.
Although the bank expects better economic conditions in 2021, it predicted continued uncertainty as countries emerge from the pandemic at different speeds and as governments pare back support measures.
And while its profits were stronger, its revenues were down 5% to $13bn due to the impact of interest rate reductions in all global businesses.
But lower rates may have contributed to an increase in lending over the quarter, particularly for mortgages in the UK and Hong Kong.
The bank expects lending to continue to grow in 2021, although that growth depends on the global recovery from the pandemic.