HSBC profits up 4% in Q1

The bank attributed the results to a "strong" performance in its investment banking division.

The profits defied expectations of a drop following investigations into HSBC Swiss Private Bank in connection with allegations of tax evasion or tax fraud, money laundering and unlawful cross border banking solicitation.

The bank admitted that the Financial Conduct Authority issued a request for information to HSBC Bank plc and HSBC Holdings plc in relation to HSBC Swiss Private Bank. In April 2015, HSBC Holdings plc was informed that it has been placed under formal criminal investigation by the French magistrates in connection with the conduct of HSBC Swiss Private Bank in 2006 and 2007 for alleged tax offences, and a €1bn bail was imposed. HSBC Holdings plc has appealed the magistrates’ decision.

Group Chief Executive, Stuart Gulliver, commented:

"Our business recovered well in the first quarter following a difficult 4Q14. Global Banking & Markets had its usual strong start to the year, with a notable increase in year-on-year revenue in our Markets businesses. Commercial Banking continued to perform well, particularly in the UK and Hong Kong, and Principal Retail Banking & Wealth Management generated increased revenue. Loan impairment charges were significantly lower compared to the same period in 2014, particularly in Europe and North America.

"Adjusted operating expenses increased, as expected. We continue to work on initiatives to deliver cost-savings over the remainder of 2015 and beyond."

The earnings release made no further comment on the Annual General Meeting statement which revealed that HSBC is looking into moving its headquarters out of the UK.