HSBC first quarter profits fall 14% in “tough market conditions”

Banking giant HSBC has reported a significant dip in profits in the first quarter of 2016.

In the first three months of the year, HSBC saw statutory pre-tax profits fall 14%, or $953m, to $6.1bn (£4.17bn) - down from $7.1bn a year ago.

Revenue also fell 4% compared to the same period last year to $13.9bn, in what the bank described as “extreme levels of volatility” in the market.

Analysts, however, predicted a far greater fall in profits.

Stuart Gulliver, HSBC group chief executive, said: “Our first quarter performance was resilient in tough market conditions that affected the entire banking sector.

“Profits were down against a very strong first quarter of 2015, but we increased market share in many of the product areas that are critical to our strategy.”

“Market uncertainty led to extreme levels of volatility in January and February, which affected our ability to generate revenue in our Markets and Wealth Management businesses.

“However, our diversified, universal-banking business model helped to cushion the impact through growth in other parts of the bank. Commercial Banking continued its momentum in spite of the slow-down in global trade, and we increased market share across our strategic trade corridors.

“We also grew revenue elsewhere in Retail Banking and Wealth Management, particularly from current and savings accounts in Hong Kong and the UK, and personal lending in Asia and Mexico.”