Banking giant HSBC reported soaring profits today before hinting that more job cuts could be on the way - two weeks after it announced it was shedding thousands of posts.

Chief executive Stuart Gulliver said the industry was moving into "calmer waters" in the wake of the credit crunch and the payment protection insurance mis-selling scandal as charges for bad loans and compensation fell.

But Mr Gulliver, who was paid £7.4 million last year, said he could not give any assurances over potential future job losses.

Underlying profits in the first quarter of 2013 were up to $7.6 billion (£4.9 billion), from $5.7 billion (£3.7 billion) - representing a 34% year-on-year rise.

Worldwide, the bank has lost 40,000 of its employees as a result of restructuring and sell-offs since Mr Gulliver took over at the start of 2011.

The cuts are 10,000 more than the number predicted at the time. Mr Gulliver said HSBC was responding to "economic and regulatory" circumstances.

The bank, which is due to give a key strategy update next week, expects total staff numbers to fall eventually to 254,000.

A fortnight ago, HSBC announced a shake-up affecting more than 3,000 UK jobs, though around 2,000 further posts being created were expected to be mostly filled by displaced employees.

But today Mr Gulliver said: "I can't give any assurance that there won't be further job cuts."

The bank said its improved profits for the first quarter of the year reflected higher revenues and lower loan impairment charges, with a notable improvement in its US consumer and mortgage lending business.