The bank HSBC announced this Tuesday that its profits from the first trimester They fell almost 30% due to a larger-than-expected credit loss and inflation, although the banking giant remains optimistic about its future.
The London-based bank posted profits of $4.2 billion before taxes for the January-March period, down 28% from a year earlier, while reported revenue declined 4% to $12.5 billion.
“Although profits were down from the first quarter of last year due to the market impact on equity income and a more normalized level of ECL (expected credit losses), the increase in loans in all activities and regions and the growth of the personal banking, insurance and trade finance business bodes well for the coming quarters,” said the bank’s president, Noel Quinnit’s a statement.
HSBC reported $600m of ECL, compared to $400m in the same period last year.
The bank said it expects single-digit growth this year in revenue and loans.
The figures for this Tuesday were published in a context of the Russian invasion of Ukrainewhich the bank says has exacerbated inflationary pressures and higher ECL.
“The repercussions of the Russian-Ukrainian war, together with the economic impacts of Covid-19 have pushed up the prices of several basic products, with the consequent increase in inflation, creating greater challenges for the monetary authorities and our clients,” the bank said.