HSBC profit up on strong investment bank, cost cuts

HSBC, Europe's biggest bank, beat expectations with an underlying profit of almost $7 billion in the first quarter thanks to a rebound in investment banking income and a fall in US bad debts.

HSBC said its underlying profit in the first quarter was $6.8 billion, up 25% on the year and above the $5.8 billion expected by analysts. Its statutory profit was $4.3 billion, hit by a negative $2.6 billion impact of movement in the value of its own debt.

The bank said it had made "good progress" on all areas of strategy, including cost savings, as part of Chief Executive Stuart Gulliver's plan to boost profitability by cutting costs, quitting areas where the bank lacks scale and increasing its focus on Asia.