HSBC on Monday said lower taxes and a drop in bad loan charges helped lift first quarter net profit by 58%, but underlying profit was down, revenue was flat and costs were sharply up in the period.

Net profit was $4.15bn in the period, compared with $2.63bn in the first quarter of last year, and largely the result of lower tax charges. Adjusted pretax profit was $5.5bn, below analyst expectations of around $6bn, and down from $6.01bn the comparable quarter.