HSBC Posts Higher Q1 Profit

LONDON-- HSBC Holdings PLC on Tuesday said net profit inched up in first three months of the year, bolstered by a strong performance at its markets business.

The bank said it made a net profit of $5.3 billion in the quarter compared with $5.2 billion in the same period last year. Reported revenue came in at $15.9 billion, broadly unchanged from a year earlier, helped by the sale of a stake in Industrial Bank.

"Our business recovered well in the first quarter following a difficult 4Q14," HSBC Chief Executive Stuart Gulliver said.

Management has recently been criticized as the bank struggles to boost profitability amid heightened regulatory costs. HSBC's management has worked to make the bank more manageable and streamlined. On Tuesday the bank said operating expenses were $8.8 billion, compared to $8.9 billion a year earlier.

Last month HSBC announced it was reviewing whether to remain headquartered in the U.K. The bank has been hit by increased taxes and regulation of late, sparking investors to question whether it would be better off based in Hong Kong or Shanghai.

The bank is set to present a refined strategy on June 9, which analysts expect will lead to the bank to shrink further. HSBC has begun sounding out prospective buyers for its Brazilian and Turkish units, according to people familiar with the matter.

Write to Max Colchester at [e-mail] and Margot Patrick at [e-mail]

Access Investor Kit for HSBC Holdings Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0005405286

Access Investor Kit for HSBC Holdings Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US4042804066

Subscribe to WSJ: http://online.wsj.com?mod=djnwires