HONG KONG -- HSBC released its Interim Management Statement (IMS) on Monday stating that its net profit in the first quarter of this year was $4.15 billion, up 58 percent year-on-year, resulting in basic earnings per ordinary share of 23 cents, up 53 percent.
According to the figures, revenues in the first quarter ending Mar 31, 2011, were 5 percent lower than that in the same period of 2010.
HSBC Group Chief Executive Stuart Gulliver said the slight decline was principally due to the ongoing run-off in the US of the Consumer Finance portfolios and lower balances in Cards, and reduced revenues in Global Banking and Markets, including lower Balance Sheet Management revenues, as expected.
As for the 60.9 percent rise in the cost efficiency ratio, Gulliver said the increase was also driven by a number of items which affected the comparisons with the first quarter of 2010 and the fourth quarter of 2010, in particular a provision of $440 million relating to payment protection insurance in the UK.
The bank has increased its emphasis on cost management across the Group, launching a number of cost reduction programs during the period, which will be covered in more detail at the Strategy Day on Wednesday, he said.
In addition, the advances-to-deposits ratio for the bank remained conservative at 78.2 percent. Core Tier 1 ratio improved to 10.7 percent.
Loan impairment charges and other credit risk provisions fell 37 percent to $2.38 billion for the first quarter, the lowest quarterly level since the second quarter of 2006.
