LONDON (Reuters) -HSBC Holdings PLC on Tuesday reported a significantly better-than-expected 79% rise in first quarter profit, after the improved economic outlook allowed it to release cash it had set aside against bad loans because of the coronavirus pandemic. Europe’s biggest bank by assets posted profit before tax of $5.78 billion for the three months ended on March 30, up from $3.21 billion a year ago and well above an average analyst forecast of $3.35 billion compiled by the bank. HSBC said its credit losses for 2021 were likely to be below the medium-term range of 30-40 basis points it forecast in February. The bank released $400 million of provisions for bad debts amid the pandemic. HSBC said it was continuing negotations for the sale of its French retail banking business, but no final decision has been taken. Reuters reported last month that it had entered final negotiations to sell the business, which has 270 branches, to private equity firm Cerberus.