HSBC Beats Estimates and Posts Q1 Profit of $7.1Bln

The recently underfire bank HSBC (HSBA.L) today announced first quarter profits in excess of analysts estimates after a diffcult end to 2014. The bank posted a $7.1Bln profit for the first quarter, up 4% on the same period last year and around a fifth higher than previous estimates.

The bank benefited from reduced write offs compared to the previous year with regulatory provisions of £139m, UK customer redress programmes at £137m and restructuring costs of £43m.

The commercial banking arm of HSBC (HSBA.L) showed good performance particularly in the UK and Hong Kong.

Chief executive Stuart Gulliver said: “Our business recovered well in the first quarter following a difficult fourth quarter of 2014. Global Banking & Markets had its usual strong start to the year, with a notable increase in year-on-year revenue in our markets businesses. Loan impairment charges were significantly lower compared to the same period in 2014, particularly in Europe and North America.”

HSBC (HSBA.L) is trading slightly lower is early trading at 633.6p (-1.98%)