HSBC sees 4% fall in pre-tax profit due to higher operating expenses

Revenues increase 6%

HSBC has seen a 4% fall in pre-tax profits in its first quarter results this morning, falling from $5bn a year ago to $4.8bn and missing analyst expectations.

Analysts had previously expected the bank to report a pre-tax profit of $5.7bn. HSBC said the reason for the fall was due to a 13% increase in operating expenses compared to a year ago, related to the retail banking business in the UK and China. Operating expenses rose to $9.4bn while revenue increased 6% year-on-year from $12.9bn to $13.7bn. HSBC explores M&A options for asset management business There was positive news, however, as the firm announced a $2bn share buyback which is expected to begin shortly. Chief executive John Flint, reporting his first results since taking...