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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk Quantum
Regulation
French regulator questions need for share trading equivalence
Esma’s reinterpretation ahead of Brexit reduces need for equivalence system, says AMF official
Receive this by email