HSBC first-quarter pre-tax profit falls 19%_Economy_Asia Pacific Daily

To download APD News app

1. Please scan the QR Code 2. Download and install APD News App

HSBC first-quarter pre-tax profit falls 19%

Economy2017-05-04

HSBC said on Thursday that pre-tax profit fell 19 percent to US$4.96 billion in the first three months of the year.The bank said the drop in reported profit was down to a change in the accounting of the fair value of its debt, while the results from a year ago included proceeds from its Brazil business, which was sold in July 2016.It also posted a 19.5 percent drop in year-on-year net profit to $3.13 billion from $3.89 billion in the same period last year.However, it said adjusted pre-tax profit, which excludes one-time items, rose to $5.94 billion from $5.3 billion a year earlier, with group chief executive Stuart Gulliver calling it a "good set of results".Gulliver said the figure was boosted by a $1 billion share buy-back as well as progress on cost-saving.That figure beat estimates of $5.3 billion in a survey by Bloomberg News.The results are the first since the banking giant announced the appointment of a new chairman in March as part of a management overhaul that will also see it choose a new chief executive, following a massive drop in profits in 2016.British businessman Mark Tucker, currently group chief executive and president of insurance group AIA, will take over from Douglas Flint in October.He will lead the hunt for a new CEO to replace Gulliver who is set to retire in 2018.(AFP)

1e78d3700251b0a532e8d21310f3eecf.pngHSBC said on Thursday that pre-tax profit fell 19 percent to US$4.96 billion in the first three months of the year.

The bank said the drop in reported profit was down to a change in the accounting of the fair value of its debt, while the results from a year ago included proceeds from its Brazil business, which was sold in July 2016.

It also posted a 19.5 percent drop in year-on-year net profit to $3.13 billion from $3.89 billion in the same period last year.

However, it said adjusted pre-tax profit, which excludes one-time items, rose to $5.94 billion from $5.3 billion a year earlier, with group chief executive Stuart Gulliver calling it a "good set of results".

Gulliver said the figure was boosted by a $1 billion share buy-back as well as progress on cost-saving.

That figure beat estimates of $5.3 billion in a survey by Bloomberg News.

The results are the first since the banking giant announced the appointment of a new chairman in March as part of a management overhaul that will also see it choose a new chief executive, following a massive drop in profits in 2016.

British businessman Mark Tucker, currently group chief executive and president of insurance group AIA, will take over from Douglas Flint in October.

He will lead the hunt for a new CEO to replace Gulliver who is set to retire in 2018.


(AFP)


Hot Recommended

  • Library designed by Daniel Wu nominated for British architecture 'Oscar'

  • 14 arrested in cross-border drug ring bust

  • China’s environment tax law takes effect in 2018

  • Women's only parking space sparks controversy in China

  • The world’s first and last places to welcome 2018

  • Highlights of President Xi's 2018 New Year Address