HSBC beats estimates with first-quarter earnings

STORY: HSBC posted a 27% drop in first-quarter profits on Tuesday, but still managed to beat analyst estimates in a troubled global economy.

But they warned that further share buybacks were unlikely this year, as rising inflation, soaring energy prices and supply chain woes dent its financial outlook.

The London-based bank posted a pretax profit of around $4.2 billion for the year to March, well above the $3.7 billion average estimated by analysts.

And partly driven by fallout from the crisis in Ukraine, as well as inflation, it logged an expected credit loss of $600 million in the first quarter.

Still, lenders are pinning their hopes on rising interest rates to bolster their profit margins.

HSBC Chief Executive Noel Quinn is betting billions in cash on growth in Asia, moving global executives to the region and honing in on its wealth management business there.

But risks are adding up in China, which has been hobbled by a growing lockdown and private sector crackdown.

In Hong Kong, HSBC's biggest market, revenues fell by three percent as its branches in the city closed, dealing a blow to its investment product sales.

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