HSBC net profit down 18% at $4.3 bn in first quarter

HSBC’s net profit was down 18% at $4.3 billion in the first quarter, the bank said on Tuesday, affected by “extreme levels” of market volatility early in the year.

HSBC’s net profit was down 18% at $4.3 billion in the first quarter, the bank said on Tuesday, affected by “extreme levels” of market volatility early in the year.

HSBC, Europe’s biggest bank, reported on May 3 a pretax profit of $6.1 billion for the first three months in 2016. (Agency Photo)

“Our first quarter performance was resilient in tough market conditions that affected the entire banking sector,” said group chief executive Stuart Gulliver.

Falling oil prices and fears over China’s economic slowdown contributed to a stocks rout in Asia early 2016 -- Hong Kong’s Hang Seng plunged to its lowest levels for almost four years in February.

Profit before tax for the first quarter was $5.43 billion, also down 18% year on year.

Revenues fell 4% at $13.91 billion, with the bank saying market turmoil in January and February weighed on its markets and wealth management businesses.

The first two months of the year saw “reduced client activity” in foreign exchange and stocks, with a partial recovery in March, HSBC said in its report.