HSBC has recorded better than expected first quarter profits with growth in lending in the UK increasing in spite of uncertainty about Brexit.
The banking giant increased profits to $6.21 billion (£4.7bn) before tax compared with $4.76bn last time and analysts’ forecasts of around $5.6bn.
The growth was powered by the retail banking and wealth management arm which increased profits by around 20%, to $2.2bn from $1.9bn.
HSBC said the division generated a “significant increase” in revenue on the back of higher lending and deposit balances, particularly in the UK and Hong Kong.
In a presentation to analysts HSBC said UK lending grew by a notable $3.5bn. It cited growth in mortgage balances and increased lending to corporate clients within HSBC UK.
The bank has 10 branches in Scotland and extensive investment administration operations.
Profits in the investment banking arm were flat at $1.64bn.
However, in geographic terms growth was strongest in the key Asian division, which made $5bn profit against $4.8bn last time.
The European business cut losses to $14m from $18m. The North arm made $379m profit after losing $596m last time.
Describing the results as encouraging, chief executive John Flint said the bank’s remains focused on executing the strategy outlined in June. The bank said then it aimed to accelerate growth in areas of strength, in particular in Asia and from its international network.
Mr Flint added yesterday: “At the same time, we remain alert to risks in the global economy. We are proactively managing costs and investment in line with this more uncertain outlook, and will continue to do so.”
The first quarter results were the first released by the bank since Ewen Stevenson became chief financial officer in January, after holding the same role at Royal Bank of Scotland.
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