New | HSBC shares jump after first-quarter revenue beats forecasts
Loan growth in Pearl River Delta as well as in Hong Kong, but bank still waiting for Hibor uptick
Shares in HSBC Holdings jumped by the most in almost five months in Hong Kong after the world’s sixth largest bank by assets beat forecasts with stronger-than-expected revenue in the first quarter.
Pre-tax profit rose 12 per cent after adjustments to US$5.9 billion in the three months to March due to growing revenues in Asia. Adjusted revenue for the quarter increased 2 per cent to US$12.8 billion, better than the US$12.6 billion forecast in a Bloomberg survey of five analysts.
Mortgages in the delta grew 53 per cent during the quarter while insurance sales increased 17 per cent, group finance director Iain Mackay said.
“This is not even close to where we want to be” in the area, Mackay said during a conference call after the results were announced. The strong results were signs that the bank’s investment in the region was starting to have an effect, he added.
“We expect the stock will react positively as upgrades for consensus earnings per share are likely,” said Morgan Stanley’s banking analyst Anil Agarwal, who recommends investors put an “overweight” position on the stock.