XVAs take $346m bite out of HSBC’s trading profits

Huge adjustments to the valuation of derivatives (XVAs) inflicted $346 million of losses on HSBC in the first quarter, contributing to a 49% year-on-year decline in trading profits.

The hit was recorded at the UK firm’s global banking and markets (GB&M) division, and was more than double an XVA loss posted in Q3 2019. In Q4 2019, GB&M reported a $189 million add-on to revenues because of these valuation adjustments.

Trading profits at GB&M for Q1 came in at $800 million, down from $1.6 billion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here