HSBC Holdings posts 14% profit decline in Q1

9 May 2011

Global banking company HSBC Holdings has experienced profits some 14 per cent lower than one year ago following a rise in its costs in comparison to its revenue, it emerged today.

According to the firm, its ratio of costs to revenue went up to 60.9 per cent in comparison to the 55 per cent recorded in the previous quarter, as the decline in its bad debts was largely offset by the increased level of outgoings it encountered during the opening three-month period of 2011.

Stuart Gulliver, chief executive of HSBC Holdings, explained that more details of the company's financial performance would be unveiled shortly, but attributed this fall primarily to the fact that "we have increased our emphasis on cost management … launching a number of cost reduction programmes".

This comes after Lloyds Banking Group revealed recently it endured a net loss of £2.4 billion ($3.9 billion) in the first quarter of 2011.

By Asim Shah

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