The bank has attributed the decline in profits to the market impact on wealth revenue and a more normalised level of ECL, higher lending across all businesses and regions
HSBC Building in Bangalore, India. (Credit: PageImp/Wikipedia.)
HSBC has reported a net profit of $2.8bn, or $0.14 per diluted share, for the first quarter ended 31 March 2022, a 28% decline compared to $3.9bn, or $0.19 per diluted share, for the same period the prior year.
The bank has reported a profit before tax of $4.2bn for the first quarter (Q1) of 2022, a 27% decrease compared to $5.8bn for the same period in 2021.
The company’s total revenue for the reported period was $12.5bn, which declined by 4% compared to $13bn for the corresponding quarter last year.
It has reported a net interest income of $7bn for Q1 2022, a 7% increase compared to $6.5bn for the corresponding quarter in 2021.
HSBC attributed the decline in profits to the market impact on wealth revenue and a more normalised level of ECL, higher lending across all businesses and regions.
HSBC Group chief executive Noel Quinn said: “The Russia-Ukraine war continues to have devastating consequences both within Ukraine and beyond. Our thoughts are with the many thousands who have lost their lives, their families and the many more whose lives will never be the same.
“We are supporting our colleagues in the region while implementing the sanctions put in place by the UK and other governments. HSBC Russia is not accepting new business or customers and is consequently on a declining trend.
“The vast majority of our business in Russia serves multinational corporate clients headquartered in other countries, and as a global bank, HSBC has a responsibility to help them manage these challenging circumstances.”
HSBC’s Wealth and Personal Banking business reported total revenue of $5.2bn for Q1 2022, a 7% decline compared to $5.6bn for the same quarter the previous year.
Its Commercial Banking unit reported total revenue of $3.5bn for Q1 2022, a 9% increase compared to $3.2bn for the same period in 2021.
The bank’s Global Banking and Markets business reported total revenue of $4bn for Q1 2022, a 5% decline compared to $4.2bn for the respective quarter in 2021.