HSBC on Monday sounded a cautious note about the recent recovery in the banking sector as a combination of low interest rates and higher bad debt charges dented its first-quarter profits.

The bank’s executives warned that even though the financial markets are showing signs of revival, any improvement in the global economy is still likely to be some way off. “It’s idle to speculate whether we’re at or near the bottom. I don’t think anybody thinks there is going to be a sharp recovery,” said Stephen Green, HSBC’s chairman.