DHAKA: Banking giant HSBC has reported a 14% drop in profits for the first quarter following ‘extreme levels of volatility’ in financial markets at the start of the year.

Profit before tax came in at $6.1bn for the three months to March, down from $7.1bn a year ago, reports the BBC.

However, analysts had expected a far steeper fall in profits.

HSBC chief executive Stuart Gulliver said the bank had been ‘resilient in tough market conditions’.

A conference call scheduled for later in the day could offer clues on possible further cost-cuts.

The lender had flagged earlier in the year that it would impose a global freeze on pay and hiring to cut costs by the end of 2017.

Independent banking analyst Frances Coppola said it was ‘likely there will be more job cuts’ at HSBC following the fall in profits.

But she said the results ‘could have been worse’ after financial markets were highly volatile in January and February.

HSBC’s adjusted revenue for the first quarter amounted to $13.9bn, a 4% drop from the same time last year.

BDST: 1225 HRS, MAY 03, 2016
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