Shares in HSBC Holdings (LON:HSBA) have climbed higher in London this morning as Europe biggest bank posted rise in profits as it continued to benefit from strong performance in Asia. The group’s results conclude the FTSE 100 reporting season following first-quarter results from Barclays (LON:BARC), RBS (LON:RBS), StanChart (LON:STAN) and Lloyds (LON:LLOY).
As of 08:58 BST, HSBC’s share price had added 2.31 percent to 683.10p. The shares are lending support to the benchmark FTSE 100 index which currently stands 0.36 percent higher at 7,377.47 points.
HSBC posts Q1 results
HSBC announced in a statement this morning that its reported profit after tax had soared 31 percent to $4.9 billion in the first three months of the year, while its reported revenue came in five percent higher. The company said that it had seen strong growth in Asia, despite a softer rate and growth environment. The blue-chip lender further note that turnaround of its US business was progressing, cautioning, however, this remained the group’s “most strategic challenging priority”.
“These are an encouraging set of results, and we remain focused on executing the strategy we outlined last June,” HSBC’s chief executive John Flint said in the statement. “At the same time, we remain alert to risks in the global economy. We are proactively managing costs and investment in line with this more uncertain outlook, and will continue to do so.”
Analysts weigh in
“HSBC has been one of the few banks reporting first quarter earnings that showed a favourable revenue mix,” analyst Joseph Dickerson at Jefferies commented, as quoted by Reuters.
Proactive Investors meanwhile quoted Nicholas Hyett, analyst at Hargreaves Lansdown as commenting that a strong performance in Asia was “welcome, since exposure to these high growth markets is central to the bank’s long-term prospects, and Hong Kong looks to be a particular bright spot”.
“Meanwhile the turnaround in the US business is gathering pace, despite management warnings that it remains among the toughest challenges facing the bank,” the analyst pointed out.