HSBC published its financial results for the first quarter of 2022 (Q1 2022) today. During the mentioned period, the financial services provider took a major hit in revenues and profits. Reported revenue reached $12.5 billion in the latest quarter, which is down by 4% compared to the same period last year.
HSBC’s profit after tax decreased by nearly 25% in the recent quarter. The figure reached $3.4 billion, compared to $4.5 billion in the first quarter of 2021. Profit before tax was down by $1.6 billion to $4.2 billion.
The dip in revenue was primarily due to Wealth and Personal Banking. For the first quarter of 2022, the reported operating expenses were down by 3% while adjusted operating expenses decreased 2%. According to the details shared by HSBC, the Asia region contributed $2.8 billion to the Group’s reported profit before tax. HSBC UK contributed around $1.2 billion.
“I’m encouraged by our start to the year. Our strategy is on track, with organic growth and good momentum across most parts of the Group. While profits were down on last year’s first quarter due to market impacts on Wealth revenue and a more normalized 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. We have further reduced costs while maintaining high levels of technology investment and remain on track to achieve our cost and RWA reduction targets for 2022,” Noel Quinn, the Group Chief Executive at HSBC, commented.
Impact of Global Uncertainties
The recent Russia-Ukraine war has had a negative impact on the results of HSBC. Quinn noted that HSBC Russia is not accepting new customers or businesses.
“The vast majority of our business in Russia serves multinational corporate clients headquartered in other countries, and as a global bank, HSBC has a responsibility to help them manage these challenging circumstances,” Quinn added.
