HSBC Reports Fall in Profits for Q1 – Better Than Analyst Expectations 4th May 2016
05/04/2016

HSBC released their 2016 Q1 earnings report yesterday surprising many commentators with its positivity.

Online PR News – 04-May-2016 – Toronto, Ontario – Baumann Group

HSBC Reports Fall in Profits for Q1 – Better Than Analyst Expectations 4th May 2016

HSBC released their 2016 Q1 earnings report yesterday surprising many commentators with its positivity.

Chief Executive Stuart Gulliver gave the results, introducing a first quarter that showed some semblance of a turnaround from Q4 2015.

Profits for Q1 were down 14% for the 3-month period. Before tax earnings came in at $6.1bn down from $7.1bn in 2015. Adjusted pre-tax profits, including adjustments for currency fluctuations and one off payments were down 18% to $5.4bn.

Revenues for the period were down 4% at $13.9bn against Q4 2015. This was a major turnaround as the company posted losses of $858m for the last three months of last year.

The Chief Executive believes that their $5bn cost cutting plans are on target for 2017. In Q1 the bank cut over 1,000 jobs with more expected to come. The company now employs just over 250,000 people globally covering 71 countries and jurisdictions.

With Asia making up the lion’s share of HSBC revenues the prospects of a strong year lie within the region and the opportunities that arise. HSBC has good exposure to the China M&A action and this should help bolster revenues in the near future as China businesses start to look overseas to expand.

The bank also confirmed the sale of its Brazilian unit to Banco Bradesco. Its $5.2bn sale has now passed through local competition regulators.

On the FTSE, HSBC’s shares increased just over 1% after the report was released.

European Market Closes 3rd May:
FTSE – 6,185.59 (-0.90%)
DAX – 9,926.77 (-1.94%)
CAC – 4,371.98 (-1.59%)
BEL – 3,380.42 (-1.20%)
SMI – 7,850.68 (1.59%)

The Baumann Group are specialists in seeking out high return products or services across industries that are showing the best returns. We tirelessly scour the development programs looking for companies capable of disrupting existing technologies, products or services with ground-breaking technology or revolutionary production methods or services that can seriously impact the future. The ways in which we aid these companies from their outset to their realization of their goals, means that we, in turn, fulfil our vision for the future at The Baumann Group.