HSBC, Europe's biggest bank, beat expectations with an underlying profit of almost $7 billion (€4.9 billion) in the first quarter thanks to a rebound in investment banking income and a fall in US bad debts.
HSBC said its underlying profit in the first quarter was $6.8 billion, up 25 per cent on the year and above the $5.8 billion expected by analysts.
Its statutory profit was $4.3 billion, hit by a negative $2.6 billion impact of movement in the value of its own debt.
The lender, which operates in about 85 countries, has set aside more than $65 billion for souring loans in North America following its 2003 purchase of Household International Inc, which lent directly to US customers with subprime credit.
US loan impairments fell by about $500 million from the year- earlier period, HSBC said.
The bank said it had made "good progress" on all areas of strategy, including cost savings, as part of chief executive Stuart Gulliver's plan to boost profitability by cutting costs, quitting areas where the bank lacks scale and increasing its focus on Asia.
