HSBC's First Quarter Earnings Climb with Lower Costs

HSBC announced a 31% increase in pre-tax profits for the first quarter due to lower costs and higher revenues in Asia.

The largest bank in Europe generated $ 6.2 billion ($ 4.8 billion) pre-tax in the three months to March, up from $ 4.8 billion a year ago.

He beat badysts' average estimate of $ 5.58 billion set by HSBC.

Managing Director John Flint said the results were "encouraging" against a backdrop of global economic uncertainty.

Shares rose 2.3% in Hong Kong after the earnings release.

In a statement, HSBC said that growth in Asia had been strong in the first quarter and had recorded a 7% increase in its revenue for the period, compared to the previous year.

The bank makes three quarters of its profits in Asia.

The earnings release also shows that HSBC has made progress in reducing costs as operating expenses decreased by 12% in the first quarter. Earnings per share rose 40% to 21 cents.

HSBC has decided to cut costs while trying to boost investment in retail banking and wealth management.

"This is an encouraging set of results, particularly in the context of increased global economic uncertainty," Flint said.

The bank said its "US recovery" is progressing but "remains our most ambitious strategic priority".

Earlier this year, HSBC announced that profits would be affected by a slowdown in China.

In 2018, the lender announced that it would invest up to $ 17 billion over three years in areas such as China and technology, without affecting profitability.