Top personnel of HSBC has claimed a prompt resolution to Brexit issue, as the unreliability is affecting the business and the confidence of the consumers. Concerning the Ian King Live programme, the Chief Financial officer of the banking giant, Ewen Stevenson claimed the UK was on a list of the global markets which HSBC was worried about. He was cited as the global lender reported a 31% hike in profits in the first quarter of the year, despite measuring the cost of financial unpredictability in the UK.
In January-March session $6.2bn profit before tax at the London-based banking group rose above expectations to $6.2bn in January-March session, up from $4.8 bn for the same period in the last year.
In the stock market filing, the company disclosed it had enhanced its allocation for the bad loans in the commercial banking business, keeping aside $ 200m, directly because of a small number of UK clients and the current economic unpredictability, instigated by the Brexit turmoil. It emerged after Lloyds Banking Group described flat profits for the beginning of the year and alerted resuming vulnerability could take a further toll on the UK economy.
Mr. Stevenson told Ian King “ overall if we look around the world and talk about markets we are concerned about the UK is certainly on that list”.
He also added, “Brexit uncertainty is creating weakness in both business confidence and consumer confidence and we have seen for some time corporate activity and personal activity slow down. As soon as we can get to a solution on Brexit and get confidence restored the better I think for the economy.”\
Next, to its escalated profits, HSBC revealed the operating expenses fell 12% over the quarter. The shares of the group ended 2% up the day.
Concerning the results, HSBC Chief executive John Flint said, “ these are an encouraging set of results, particularly in the context of heightened economic uncertainty globally.”
He also added, “ we remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy.”