UK’s HSBC comes up with better than expected Q1-2022 results despite Russia-Ukraine situation

UK’s HSBC comes up with better than expected Q1-2022 results despite Russia-Ukraine situation

London: HSBC Holdings skirted a wave of issues facing the global economy to post better-than-estimated earnings in the first three months of the year. The London-based bank reported adjusted pre-tax profits of $4.71 billion, beating a company-compiled consensus of analysts of $4.49 billion for the period. Hits to earnings were offset by a rise in lending volumes and personal banking operations. The company reported an expected credit loss, or ECL, of $600 million, partly driven by the Russian attack on Ukraine and Chinese commercial real estate, compared with a release in the year-earlier period, which dragged down earnings. “While profits were down on last year’s first quarter due to market impacts on wealth revenue and a more normalised level of ECL, higher lending across all businesses and regions, and good business growth in personal banking, insurance and trade finance bode well for future quarters,” CEO Noel Quinn said in a statement. HSBC has been expecting a pick up in momentum this year as interest rates rise globally, and it anticipates lending to rise in the ‘mid-single-digit’ range in 2022. Europe’s biggest bank has been pouring billions in fresh cash into Asia, while exiting unprofitable businesses elsewhere, to boost its profitability,