HSBC Holdings, Europe's biggest bank, said its first quarter profits were "well ahead" of last year, swelled by record results in its investment bank arm and gains on the value of its own debt.

Excluding the fair value gains on its own debt, first quarter profit was below a year ago, but "significantly higher" than in the fourth quarter, the bank said.

Loan impairment charges and other credit risk provisions were higher than a year ago but lower than the previous quarter on both an underlying and reported basis.