The bank reported revenue of $12.98bn for Q1 2021, a 5% decrease compared to $13.68bn for the same period last year
HSBC office in Bangalore. (Credit: PageImp/Wikipedia.)
HSBC has reported a profit after tax (PAT) of $4.6bn for the first quarter ended 31 March 2021, an 82% rise compared to $2.5bn for the same period in 2020.
It reported a profit before tax of $5.77bn for the first quarter (Q1) of 2021, an increase of 79% compared to $3.22bn for the same quarter the previous year.
The bank reported revenue of $12.98bn for Q1 2021, a 5% decrease compared to $13.68bn for the same period last year.
It has attributed the decline in revenue to the impact of 2020 interest rate reductions across its international businesses.
HSBC Group CEO Noel Quinn said: “We had a good start to the year in support of our customers, while achieving materially enhanced returns for our shareholders.
“I am pleased with our revenue and cost performance, but particularly with our significantly lower expected credit losses.
“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.”
HSBC’s Wealth and Personal Banking division reported revenue of $5.7bn for Q1 2021, a 1% decline compared to $5.8bn for Q1 2020.
Its Commercial Banking division reported revenue of $3.3bn for Q1 2021, a decrease of 14% compared to $3.9bn for the same period last year.
The Global Banking and Markets division of HSBC reported revenue of $4.3bn for Q1 2021, a 10% increase compared to $3.9bn for Q1 2020.
Its Return on average tangible equity (RoTE) was 10.2%, an increase of six points from Q1 2020, and the Common equity tier 1 (CET1) ratio was 15.9%.
Quinn added: “The execution of our growth and transformation plans is proceeding well. We made further progress in reducing both costs and risk-weighted assets and launched new products and capabilities in areas of strength.
“The economic outlook has improved, although uncertainties remain. We carry good momentum into the second quarter, while maintaining conservative positions on capital, funding, liquidity and credit.”