HSBC unveiled big first-quarter profits, helped by emerging markets growth and higher income at its investment banking division.
Europe's biggest bank said underlying pre-tax profits jumped by 25% to $6.8 billion in the three months to March 31 compared with the first quarter of 2011
Net profits hit $2.58 billion, down 38% on revaluation of its debt.
"We have had a good start to the year," HSBC chief executive Stuart Gulliver said in the bank's earnings statement.
"Underlying profit before tax increased by $1.4 billion, driven by increased revenues," he added.
Gulliver said that markets remained "volatile with high levels of debt and regulatory and political uncertainty in developed economies, contrasting with an encouraging outlook in faster-growing markets."
HSBC said revenue in the first quarter jumped 16% in Hong Kong and 18% in the rest of the Asia-Pacific region.
"Our performance in April has been satisfactory, and we remain confident that we will deliver on executing our strategy," the bank's chief executive said. Founded in Hong Kong and Shanghai in 1865, HSBC in the process of reducing the bank's global workforce by 30,000 over two years to 2013.
Last month it said it would cut 3,167 jobs in Britain as part of the plans to save up to $3.5 billion. HSBC said today that it had set aside a further $468m to compensate clients who were mis-sold insurance products in Britain.
Last year, Britain's banks lost a high court appeal against tighter regulation of PPI, which provides insurance for consumers if they fail to meet repayments on a credit product such as loans, mortgages or credit cards.
PPI became controversial after it was revealed that many consumers had been sold the insurance without understanding that the cost was being added to their loan repayments. HSBC said that its bad debt charges in the US dropped by $500m in the first quarter from the equivalent period in 2011.
The bank last year sold its US credit card and retail services business to Capital One Financial Corporation in a deal worth $32.7 billion, as it looked to focus on building its business in the East.
HSBC also revealed today that its core tier one ratio, or buffer against future financial crises, stood at 10.4% at the end of March, above the 9% level set by the EU's banking regulator.
