(MENAFN- ProactiveInvestors - UK) HSBC (LON:HSBA) appeared to weather the volatile start to the year with only minimal damage after reporting a lower than expected drop in profits and flat capital reserves.
For the first quarter Britain's biggest bank posted a 14% drop in pre-tax profits to 4.14bn.
Adjusted pre-tax profits fell 18% to 3.7bn the first quarter compared to the corresponding period last year but nonetheless ahead of analyst expectations of 2.9bn.
The bank called it a 'resilient performance despite challenging market conditions.'
The investment banking sector suffered after stock markets collapsed at the start of 2016 amid an oil price collapse.
Swiss bank UBS saw profits fall by almost 40% to 977mln in the first quarter while Barclays saw profits drop 25% to 793mln.
'Our diversified universal-banking business model helped to cushion the impact through growth in other parts of the bank' said HSBC chief executive Stuart Gulliver.
HSBC issued $10.5bn in total loss-absorbing capacity securities or TLACs a high quality form of capital making it the largest fundraising by a lender since the financial crisis of 2008.
The first quarter results also showed its workforce had shrunk by nearly 1000 as part of a tough cost-cutting programme. The bank announced plans last year to slash 50000 jobs globally by the end of 2017 which would save an estimated 3.3bn. Plans to freeze staff pay this year were thrown out following an outcry from employees.
The bank spent 476mln during the quarter on regulatory and compliance programmes up nearly 20% amid the controversy surrounding its Swiss arm and the Panama Papers scandal.
Earnings per share dropped to US$0.20 compared to US$0.26 for the same period last year while the dividend was frozen at US$0.10 reigniting speculation about a possible share buyback.
It also announced the 3.5bn sale of its Brazil unit to banking giant Banco Bradesco had received preliminary approval from regulators.
Gulliver said the bank was considering purchases to bolster its wilting shares down almost 30% in the last year.
Last month Gulliver faced an investor backlash over his Brobdingnagian pay packet.
At 7.3mln around 169 times the average HSBC worker's pay it was deemed 'highly excessive' by an investor pressure group.
Currently acting as chairman Gulliver is due to step down once a replacement has been found.
Shares were down 0.4% to 450.65p.
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