HSBC reported a profit after tax of $4.6 billion in the first quarter, up 82% from the same quarter last year, according to the company’s press release. The company released $400 million bad loans provisions, as rapid vaccine rollouts in the U.S and U.K raised economic recovery prospects.
HSBC had profitability across all regions in Q121, with the U.K recording pre-tax profits of over $1.0 billion.
Bank revenues slipped 5% year over year to $13.0 billion on the impacts of interest rate reductions in its global operations last year.
Net interest margin was down 33 basis points to 1.21% year over year.
The bank’s lending rose by $2 billion on a reported basis and $6 billion on a constant currency basis.
Return on average tangible equity jumped 6.0 percentage points from Q120 to 10.2% in Q121.
Common equity tier 1 remained unchanged at 15.9% since 31 December 2020.
HSBC expects mid-single-digit percentage growth in customer lending this year.
The bank will not offer quarterly dividends in 2021 and will consider whether to declare an interim divided during half year results in August.
HSBC stock is currently gaining. HSBC: NYSE is up 3.51% on premarket.
