HSBC profits fall 19% after accounting change

The bank also reported a 12% rise in adjusted pre-tax profits to $5.9bn (£4.5bn) in its Q1 2017 results.

Asia was the main driver of performance, with adjusted profits rising 25% from $3.4bn (£2.6bn) to $4.3bn (£3.3bn) year on year.
 
Adjusted profits also grew strongly in the retail banking and wealth management division rising by 46% to $1.7bn (£1.3bn), mainly a result of life insurance manufacturing activities. Likewise in the global banking and markets division, adjusted profits rose by 35% to $1.7bn (£1.3bn), driven by increased activity from customers in credit and rates.
 
The quarterly dividend of $0.10 (£0.08)was maintained.
 
Shares rose 3% in early morning trading.

Laith Khalaf, Senior Analyst, Hargreaves Lansdown, had this to say: "The dial has twitched in the right direction at HSBC, though the bank needs to sustain this performance for more than one quarter to convince shareholders it’s on the up and up.
 
The bank’s Asian focus has proved to be a key driver of returns so far in 2017, and while we can expect highs and lows from this market, HSBC is well-positioned to take advantage of the long term opportunities in the area.
 
In line with global rivals the investment bank also put in a good performance, helped by increased client flows in its fixed interest division, almost certainly prompted by rising US interest rates.
 
Return on equity is still languishing below the bank’s 10% target however, so HSBC remains a work in progress. In the meantime shareholders are being paid to wait with a dividend yield of almost 6%, though that high number reflects the fact the market is demanding a premium for patience."