HSBC Holdings Plc said profit at its investment bank increased 6 percent as it earned more from equities and currency trading amid volatile markets.
Pretax profit in global banking and markets, the division that houses the firm’s trading units, rose to $3.04 billion from $2.87 billion a year ago, the bank said in a statement Tuesday. Revenue from foreign exchange, the largest earnings driver in the markets business, climbed to $942 million from $757 million a year earlier, adjusted for currency movements.
HSBC said increased volatility pushed up currency-trading revenue, while “increased client flows” helped credit and equities. It joins European and U.S. firms that have posted an improvement in businesses such as foreign exchange, equities and rates in the quarter.
Global banking and markets had “its usual strong start to the year, with a notable increase in year-on-year revenue in our markets businesses,” Chief Executive Officer Stuart Gulliver said in the statement.
UBS Group AG said earlier Tuesday that first-quarter pretax profit at its investment bank rose 82 percent, fueled by an increase in trading. Deutsche Bank AG’s investment bank boosted revenue 15 percent in the quarter, also led by sales and trading of fixed-income products and equities.