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LONDON: Europe's biggest bank HSBC unveiled big first-quarterprofits on Tuesday, helped by emerging markets growth and higherincome at its investment banking division. HSBC said underlying pre-tax profits jumped by 25 percent to $6.8billion (5.2 billion euros) in the three months to March 31compared with the outcome for the first quarter of 2011. Net profits hit $2.58 billion, down 38 percent on revaluation ofits debt. "We have had a good start to the year," HSBC chief executive StuartGulliver said in the bank's earnings statement. "Underlying profit before tax increased by $1.4 billion, driven byincreased revenues." In reaction, HSBC shares rose 0.97 percent to stand at 560.5 pencein morning deals on London's benchmark FTSE 100 index, which wasdown 0.27 percent at 5,640.19 points. Gulliver added that markets remained "volatile with high levels ofdebt and regulatory and political uncertainty in developedeconomies, contrasting with an encouraging outlook infaster-growing markets." HSBC said revenue in the first quarter jumped 16 percent in HongKong and 18 percent in the rest of the Asia-Pacific region. Gulliver added: "Our performance in April has been satisfactory,and we remain confident that we will deliver on executing ourstrategy." Founded in Hong Kong and Shanghai in 1865, HSBC in the process ofreducing the bank's global workforce by 30,000 over two years to2013. Last month it said it would cut 3,167 jobs in Britain as part ofthe plans to save up to $3.5 billion. HSBC said on Tuesday that it had set aside a further $468 millionto compensate clients who were mis-sold insurance products inBritain. Last year, Britain's banks lost a high court appeal against tighterregulation of PPI, which provides insurance for consumers if theyfail to meet repayments on a credit product such as loans,mortgages or credit cards. PPI became controversial after it was revealed that many consumershad been sold the insurance without understanding that the cost wasbeing added to their loan repayments. HSBC added on Tuesday that its bad debt charges in the UnitedStates dropped by $500 million in the first quarter from theequivalent period in 2011. The bank last year sold its US credit card and retail servicesbusiness to Capital One Financial Corp. in a deal worth $32.7billion, as it looked to focus on building its business in theEast. HSBC also revealed on Tuesday that its core tier one ratio, orbuffer against future financial crises, stood at 10.4 percent atthe end of March, above the 9.0 percent level set by the EU'sbanking regulator. - AFP/de. We are high quality suppliers, our products such as China Fingerprint Door Lock , China Sauna Lock for oversee buyer. To know more, please visits Mifare Card Lock.
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