HSBC said its profits rose 4.0 per cent in the first quarter as investment banking revenues bounced back after a weak end to last year to offset a rise in compliance and regulation costs.

HSBC, Europe’s biggest bank, yesterday reported a pretax profit of £5 billion for the first three months of this year, up from £4.5 billion a year ago and well above the average forecast from analysts polled by the company.

Underlying revenues rose 4.0 per cent on the year, driven by an 8.0 per cent rise in its markets income. The bank said its underlying operating costs rose 6.0 per cent from a year ago, partly due to an increase in compliance staff.

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