Pre-tax profit at HSBC Private Bank was $286m
as at 31 March 2012, a $22m dip on a year-on-year basis, but a
$142m rise quarter-on-quarter.
The $22m dip was due to low revenues and high
loan impairment charges offset by operating expenses reduction, the
bank said
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The UK-based bank said the $142m quarterly
rise was due to rise in trading income and net fee income coupled
with lower loan impairment charges and operating expenses.
Meanwhile, the private banking unit saw a rise
in demand for credit from its customers, notably in Hong Kong and
Europe, the bank added.
Cost efficiency gains, $0.5bn in net
outflows
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By GlobalDataHSBC Private Bank’s cost efficiency ratio in
the first quarter of 2012 was 64.8%, 8.6% down since 31 December
2011, and 0.2% up on year-on-year basis.
Fee income declined following lower average
assets under management (AuM), the bank said.
Private banking total operating expenses were
$535m, $30m lower on a quarterly basis, and $11m down since 31
March 2011.
Operating expenses decreased due to lower
staff costs reflecting a reduction in performance-related pay and
lower average full time equivalent employees, partly offset by
higher restructuring costs, the bank said.
HSBC’s private banking unit also reported net
new money outflows of $0.5bn in last three months.
This was mainly due to large withdrawals in
Switzerland, and were partly offset by net new money inflows in
Asia, the bank said.
