CompaniesMay 7 2013

HSBC increases profit 95% to £5.4bn in first quarter

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ByDonia O’Loughlin

HSBC’s profit before tax in the first three months of 2013 almost doubled, increasing 95 per cent to $8.4bn (£5.4bn) compared to the same period in 2012.

In its first quarter interim management statement, published today (7 May), HSBC said this included a mark-to-market writedown of $200m on its debt, compared to $2.6bn (£1.67bn) in Q1 2012, and gains of $1.1bn (£700,000) from disposals compared to $200,000 (£128,683).

HSBC also said that its UK consumer redress provision fell by 71 per cent by 31 March 2013, with the bank only needing to set aside an additional $75m (£48.3m) compared to $260m (£167m) in Q1 2012.

Stuart Gulliver, group chief executive, said: “While continuing uncertainty in the global economy has created a relatively muted environment for revenue growth, we have increased revenue in key areas including residential mortgages and commercial banking... and in our financing and equity capital markets business.

“We have achieved further progress on the journey we started in 2011 to make HSBC easier to manage and control. The implementation of global standards will help ensure that we meet the commitments we made to the US and UK authorities as part of the settlement agreements reached at the end of last year.

“We have strengthened our capital position and remain one of the best-capitalised banks in the world, allowing us both to invest in organic growth and grow dividends. Our strategic direction remains unchanged.

“Later this month we will update investors on the next phase of its implementation.”