HSBC sees recovering economic growth help boost profits
HSBC chief executive Noel Quinn has cheered recovering economic growth in many of the bank’s main markets, as the company recorded a jump in profits.
Quinn said: “We were profitable in every region in the first half of the year, supported by the release of expected credit loss provisions.”
The update follows a number of upbeat results from banks last week, with Barclays, NatWest and Lloyds Banking Group all recording higher profits.
HSBC, Europe’s largest lender, reported pretax profits of $10.8 billion (£7.8 billion) in the six months to June 30, up from $4.3 billion a year earlier. Second quarter profits also jumped.
The growth came despite revenue declining 4%, with profits helped by the release of credit loss provisions. The bank had a strong period for mortgages and also highlighted growth in Asia.
HSBC plans to pay a dividend of 7c a share for the first half of the year.
HSBC cautioned that uncertainty remains as countries emerge from the pandemic at different speeds and government support measures unwind.
But Quinn added: “I’m pleased with the momentum generated around our growth and transformation plans.”
The FTSE 100 UK-based company wants to focus on its fast-growing Asian operations and scale back underperforming businesses in Europe and the US.
Hargreaves Lansdown analyst Susannah Streeter said: “The banking bounce back has continued with HSBC doubling first half pre-tax profits as economies come out of their defensive hiding places and the spectre of bad debt recedes.”
Meanwhile, HSBC is moving to a hybrid working model where possible. The firm has plans to reduce its global office footprint by more than 3.6 million square feet- or around 20%- by the end of 2021.
The update follows a number of upbeat results from banks last week, with Barclays, NatWest and Lloyds Banking Group all recording higher profits.
HSBC, Europe’s largest lender, reported pretax profits of $10.8 billion (£7.8 billion) in the six months to June 30, up from $4.3 billion a year earlier. Second quarter profits also jumped.
The growth came despite revenue declining 4%, with profits helped by the release of credit loss provisions. The bank had a strong period for mortgages and also highlighted growth in Asia.
HSBC plans to pay a dividend of 7c a share for the first half of the year.
HSBC cautioned that uncertainty remains as countries emerge from the pandemic at different speeds and government support measures unwind.
But Quinn added: “I’m pleased with the momentum generated around our growth and transformation plans.”
The FTSE 100 UK-based company wants to focus on its fast-growing Asian operations and scale back underperforming businesses in Europe and the US.
Hargreaves Lansdown analyst Susannah Streeter said: “The banking bounce back has continued with HSBC doubling first half pre-tax profits as economies come out of their defensive hiding places and the spectre of bad debt recedes.”
Meanwhile, HSBC is moving to a hybrid working model where possible. The firm has plans to reduce its global office footprint by more than 3.6 million square feet- or around 20%- by the end of 2021.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
