HSBC pre-tax profit slides but hails good result

HSBC said Thursday that earnings before taxes fell 19 percent in the first three months of the year, but the bank manager described them as "a good result" after a turbulent 2016 .

The London giant has seen a recovery over the past two years by aiming to cut costs with measures including layoffs of tens of thousands of employees and slimming its business.

He blamed the decline in reported profit to US $ 4.96 billion on a change in the fair value accounting of his debt, while the one-year results included included proceeds from his business Brazilian, which was sold in July 2016.

It also posted a 19.5 percent decline in net profit of one year on the other to $ 3.13 billion compared to $ 3.89 billion.

However, adjusted pre-tax income, which excludes one-off items, was $ 5.94 billion, compared with $ 5.3 billion a year earlier. Analysts had forecast $ 5.3 billion in a survey by Bloomberg News.

"This is a good result set," said Stuart Gulliver, CEO of the group, in a statement on the Hong Kong stock exchange.

He added that the adjusted pre-tax figure was boosted by a share buyback of $ 1 billion as well as progress in the cost reduction program.

Hong Kong listed shares in the company rose 1.71% to 65.55 HK in afternoon trading.

Analyst Jackson Wong said he thought the results were general.

"They cleaned up a lot of bad things in the last quarter of last year, so this quarter, everything seems very decent, even the cost reduction is on track," said Wong of Huarong International Securities.

The bank in 2015 announced a radical overhaul to cut 50,000 jobs and exit non-core and unprofitable businesses and focus more on Asia.

But the company 's profits were marked by a hammer blow last year, executives attributing decline to protectionist fears under Donald Trump and the uncertainties caused by the decision of Great Britain To leave the European Union.

Gulliver said on Thursday that 2017 would see the completion of the strategic measures announced in 2015, including the removal of risky assets with low returns.

"Our cost reduction program remains on track to achieve the cost reduction goal we announced in our annual results," he added.

First quarter results were the first as the banking giant announced the appointment of a new chairman in March as part of a management review that will also see him select a new chief The management following the massive decline in profits of 2016.

British businessman Mark Tucker, currently group leader and chairman of the AIA insurance group, will take over from Douglas Flint in October.

He will lead the hunt to a new CEO to replace Gulliver who is expected to retire in 2018.

Gulliver and Flint were roasted by British lawmakers in 2015 and apologized for "unacceptable" shortcomings in the Swiss division of HSBC following allegations that the unit helped rich clients conceal billions The taxpayer.

HSBC was one of the top six US and European banks that were fined $ 4.2 billion by global regulators in a crackdown on the US market manipulation Changes in November 2014.

He was also fined $ 1.92 billion by US prosecutors in 2012 to settle the allegations that he has not enforced the anti-money laundering rules that he , Expose to exploitation by drug cartels and terrorist organizations.

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