HSBC profits from emerging markets
Europe's biggest bank HSBC unveiled big first-quarter profits on Tuesday, helped by emerging markets growth and higher income at its investment banking division.
HSBC said underlying pre-tax profits jumped by 25 percent to $6.8 billion (5.2 billion euros) in the three months to March 31 compared with the outcome for the first quarter of 2011.
Net profits hit $2.58 billion, down 38 percent on revaluation of its debt.
"We have had a good start to the year," HSBC chief executive Stuart Gulliver said in the bank's earnings statement.
"Underlying profit before tax increased by $1.4 billion, driven by increased revenues."
In reaction, HSBC shares rose 0.97 percent to stand at 560.5 pence in morning deals on London's benchmark FTSE 100 index, which was down 0.27 percent at 5,640.19 points.
Gulliver added that markets remained "volatile with high levels of debt and regulatory and political uncertainty in developed economies, contrasting with an encouraging outlook in faster-growing markets."
HSBC said revenue in the first quarter jumped 16 percent in Hong Kong and 18 percent in the rest of the Asia-Pacific region.
Gulliver added: "Our performance in April has been satisfactory, and we remain confident that we will deliver on executing our strategy."
Founded in Hong Kong and Shanghai in 1865, HSBC in the process of reducing the bank's global workforce by 30,000 over two years to 2013.
Last month it said it would cut 3,167 jobs in Britain as part of the plans to save up to $3.5 billion.
HSBC said on Tuesday that it had set aside a further $468 million to compensate clients who were mis-sold insurance products in Britain.
Last year, Britain's banks lost a high court appeal against tighter regulation of PPI, which provides insurance for consumers if they fail to meet repayments on a credit product such as loans, mortgages or credit cards.
PPI became controversial after it was revealed that many consumers had been sold the insurance without understanding that the cost was being added to their loan repayments.
HSBC added on Tuesday that its bad debt charges in the United States dropped by $500 million in the first quarter from the equivalent period in 2011.
The bank last year sold its US credit card and retail services business to Capital One Financial Corp. in a deal worth $32.7 billion, as it looked to focus on building its business in the East.
HSBC also revealed on Tuesday that its core tier one ratio, or buffer against future financial crises, stood at 10.4 percent at the end of March, above the 9.0 percent level set by the EU's banking regulator.
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