Adjusted profit before tax totalled $5.4bn, down by $1.bn or 18%.
However compared to Q4 2015, profit before tax rose by almost $7bn, largely due to reduced operating expenses.
Group Chief Executive Stuart Gulliver said that HSBC's Q1 performance was "resilient in tough market conditions that affected the entire banking sector".
He added:
"Market uncertainty led to extreme levels of volatility in January and February, which affected our ability to generate revenue in our Markets and Wealth Management businesses. However, our diversified, universal-banking business model helped to cushion the impact through growth in other parts of the bank. Commercial Banking continued its momentum in spite of the slow-down in global trade, and we increased market share across our strategic trade corridors. We also grew revenue elsewhere in Retail Banking and Wealth Management, particularly from current and savings accounts in Hong Kong and the UK, and personal lending in Asia and Mexico."
Laith Khalaf, Senior Analyst at Hargreaves Lansdown, commented:
"It’s tough out there for banks, and HSBC is no exception, particularly seeing as it is increasingly focusing its business on Asia, which is a weak market right now. However in common with several other UK banking stocks, things weren’t quite as bad at HSBC as investors had feared.
"One of the headwinds HSBC has been battling is a deterioration of its loan book, with impairment costs doubling from last year, led by problems with borrowers in the energy and mining sectors.
"It is still very much work in progress at HSBC as the bank is engaged in a major repositioning, which will see it become much more focused upon its Asian roots and far less exposed to volatile investment banking activities. While currently problematic, the focus on Asia could prove rewarding in the long term, if HSBC executes its strategy well."
