HSBC’s Decent Q1 Performance Not Enough To Impress Investors
Although the low interest rate environment significantly hurt interest income for the global banking giant, the notable improvement in equities and foreign exchange trading revenues mitigated the impact on the top line. The results also benefited from improving economic conditions worldwide, which allowed the bank to set aside just $570 million in loan provisions for the quarter – the lowest since at least 2005. Moreover, the results were largely unencumbered by huge one-time legal charges, with the bank increasing legal reserves by $139 million and adding another $137 million to PPI and interest rate product .

Vía Forbes Real Time