HSBC’s pre-tax profit has dropped by 20%, from $8,434 million to $6,785, in the first quarter of 2014 compared to the same period in the previous year.
In addition, underlying revenue for the quarter was $15,709 million, 8% lower than the $17,135 million earned in the same quarter of 2013. Excluding significant items, revenue was lower by $350 million (2%) due to poor results in retail banking, wealth management and global banking and markets, partially offset by growth in commercial banking.
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The retail and wealth management arm of HSBC saw a rise of 9.3% in pre-tax profit from $1,567 million to $1,712 million from the quarter in the previous year. Global private banking saw a $100 million rise in pre-tax profit compared to the last quarter.
Stuart Gulliver, chief executive, said: "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 benefitted from a number of specific items, we have seen progress in revenue over the trailing quarters. 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."
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