LONDON (Alliance News) - HSBC Holdings PLC Wednesday reported a 20% drop in first-quarter pretax profit amidst a continuation of the bank's strategic efforts to cut costs and focus on businesses with good returns.
In a statement, the UK's largest bank by market capitalisation said first-quarter pretax profit fell to USD6.79 billion, from USD8.43 billion in the corresponding quarter a year earlier.
Revenue, calculated as net operating income before loan impairment charges, fell to USD15.88 billion from USD18.42 billion. Operating expenses dropped to USD8.85 billion from USD9.35 billion.
"In the first quarter we maintained control of costs and further demonstrated our capital resilience. Whilst revenue was lower than the previous year's first quarter, which benefited from a number of specific items, we have seen progress in revenue over the trailing quarters. Loan impairment charges fell, reflecting the changes to the portfolio since 2011. Our return on equity was 11.7%," Stuart Gulliver, chief executive, said in a statement.
"Global Banking and Markets had a relatively good performance, and we grew our market share in several product categories. Commercial Banking saw revenue growth but, in our Principal Retail Banking and Wealth Management business, revenues were impacted by changes in incentive plans and product pricing," Gulliver added.
HSBC declared a first interim dividend of USD0.10 per share, unchanged from a year before.
HSBC shares were Wednesday quoted at 597.70 pence, down 1.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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HSBC Holdings (HSBA)
