Profits fell 4% at HSBC in the first quarter as a higher expense bill — including the costs of digital investment and a possible regulatory settlement in the US — weighed on the bank's bottom line.

HSBC, which saw John Flint take over as chief executive in February, reported pre-tax profits of $4.8bn for the three months to March 31. Revenues rose 6% year-on-year to $13.7bn but a 13% increase in reported operating expenses to $9.4bn dragged profits down.