(HSBC) HSBC reported an after-tax profit of $3.4 billion in the first quarter of 2022, down by $1.1 billion from the previous year. The lower profit reflected credit losses and impairments, compared to a release in the prior year.
HSBC said that all its regions remained profitable, with the Asian operations generating $2.8 billion to the reported profit before tax.
The bank said that its revenues were down by 4% in the first quarter to $12.5 billion, reflecting adverse impacts in its life insurance manufacturing, as well as lower investment distribution revenue in Hong Kong.
The company said that its net interest margin increased by 5 basis points to 1.26% from the first quarter of 2021. The margin was up by 7 basis points from the fourth quarter of 2021.
HSBC sees a positive outlook in its revenue growth in 2022, supported by a mid-single-digit percentage lending increase for 2022. The bank expects a return on average tangible equity of above 10% in 2023.
The lender said it was on track to deliver its adjusted operating expenses in 2022 in line with the prior year amid the inflationary pressures and economic uncertainty from the Ukrainian war.
HSBC: NYSE is down -3.17% on premarket.
