HSBC profit soars 79% as inoculation programs fuel improved outlook
HSBC Holdings PLC released its quarterly profit figures on Tuesday, showing a stronger-than-expected output. The bank also released $400 million it had set aside to cover pandemic-induced bad loans, as successful inoculation programs in key markets sparked optimism for a brighter economic outlook.
HSCB, Europe’s biggest bank by assets, posted profit before tax of $5.78 billion for the three months ended on March 30, higher from $3.21 billion last year and beat the average analyst forecast of $3.35 billion compiled by the bank.
Following the report, Hong Kong-listed shares of HSBC improved 2.5% to their highest since April 20.
HSBC also reported that its credit losses for 2021 are expected to go below the medium-term range of 30-40 basis points it projected in February.
Still, HSBC’s improved outlook and profits remained well below U.S. rival JP Morgan, which reported a 400% rise in quarterly profit and released more than $5 billion in bad loan provisions this month.