The Retail Banking and Wealth Management unit of HSBC has posted results showing an adjusted pre-tax profit of $2.23bn for the first quarter of 2019.

This is a surge of 19% from $1.87bn in the first quarter of 2018.

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For the year ended 31 December 2018, the unit’s adjusted pre-tax profit was $7.08bn.

The unit’s adjusted revenue was $5.97bn for the three-month period ended March 2019, up 10% from $5.44bn last year.

Wealth management revenue of $1.91bn rose 8% from a year ago.

Adjusted operating expenses at the division increased 5% year-on-year to $3.45bn.

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The rise in expenses was said to be due to higher staff expenses, mainly in Asia, and growth initiatives.

HSBC Private Banking profits fall

HSBC Global Private Banking arm’s adjusted pre-tax profit dropped 12% to $98m from $111m.

The decrease was said to be driven by the bank’s repositioning actions in the US.

The unit’s adjusted revenue dipped 4% to $450m from $467m.

Adjusted operating expenses at the division dropped 3% to $350m from $359m.

The bank attributed the fall in expenses to the partial release of a provision related to the wind-down of its Monaco business.

HSBC pulled out of Monaco in 2016, offloading its clients to CFM Indosuez Wealth Management. 

Group shines

Overall, the banking group reported a pre-tax profit of $6.21bn for the quarter through to March 2019, a 31% jump from $4.75bn.

Adjusted pre-tax profit at the group was up 9% to $6.35bn from $5.8bn.

Compared to last year, the group’s adjusted revenue increased 9% to $14.4bn.

HSBC group CEO John Flint said: “These are an encouraging set of results, particularly in the context of heightened economic uncertainty globally.

“We remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy.”