Phoenix News Hong Kong Stock News
HSBC Holdings $HSBC HOLDINGS (00005.HK)$ Announcing the results for the first quarter of 2021, the net profit before tax increased by 79% to reach 5.8 billion yuan (USD, same below); the net profit after tax increased by 82% to reach 4.6 billion yuan. Basic profit per share was $0.19.
According to the Group, the decline in revenue reflects the continued low interest rate environment, but this impact was partially offset by the fact that the figures for the first quarter of 2020 included significant adverse market effects and valuation changes in the formulation of life insurance products under Global Banking and Capital Markets. Furthermore, anticipated credit losses during the quarter were recorded in preparation for reimbursement, reflecting an improvement in the economic outlook. The adjusted profit before tax increased by 109% to 6.4 billion yuan.
During the period, the benchmark revenue fell 5% to 13 billion yuan. All of the Group's global business was dragged down by falling interest rates in 2020. However, it was partially offset by market influence and valuation changes in the formulation of life insurance products under the Global Banking and Capital Markets business.
During the period, the net interest yield was 1.21%, down 33 basis points from the first quarter of 2020.
The Group implemented transformation plans and increased investment in technology, which led to an increase in restructuring structures and other related costs. As a result, the listed operating expenses increased by 9%. Adjusted operating expenses increased by 3%, due to an increase in performance-linked accrued remuneration, but the increase was partially offset by the effectiveness of cost saving measures.
The Group's results for the first quarter of 2021 benefited from anticipated credit losses...