HSBC Holdings PLC saw its profits jump by 82% in the first quarter after unleashing $400 million in earlier provisions, the company announced in a statement.
- Reported profit after tax climbed 82% to $4.6 billion while reported profit before tax jumped 79% to $5.8 billion.
- Lending increased by $2 billion, driven by the wealth and personal banking units, particularly in the United Kingdom and Hong Kong.
- Reported expected credit losses were a net release of $400 million versus a $3 billion charge the same quarter last year.
- HSBC cited an improvement in the economic outlook, driving confidence in its revenue growth plans.
- The lender expects ECL charge for 2021 to fall below the medium-term range of 30 basis points to 40 basis points of average loans.
- HSBC expects a single-digit percentage growth in customer lending for the year.
- The group does not intend to pay quarterly dividends in 2021 but will consider an interim dividend in August.
HSBC: NYSE is up 4.31%