HSBC first-half pretax profit rises 4.6%, second-quarter beats estimates

Tuesday, 7 August 2018 00:23 - - {{hitsCtrl.values.hits}}

HONG KONG/LONDON (Reuters): HSBC Holdings Plc said on Monday its pretax profit rose 4.6% for the first half of the year, as Europe’s biggest bank showed early progress in its strategy of returning to growth mode after years of restructuring.

HSBC reported a pretax profit of $10.7 billion in the six months through June, up from $10.2 billion in the same period a year earlier.

The bank’s pretax profit of $5.96 billion in the April-June quarter was higher than the $5.79 billion average of analysts’ forecasts compiled by the bank.

“We are taking firm steps to deliver the strategy we outlined in June. We are investing to win new customers, increase our market share, and lay the foundations for consistent growth in profits and returns,” John Flint, HSBC’s group chief executive, said in a statement.

Flint set out in June a three-year plan to invest $15 billion-$17 billion in areas such as technology and in China, as part of the bank’s swing from a strategy of cost-cutting to one of growth.

HSBC’s retail banking and wealth management, and commercial banking divisions performed most strongly, Flint said, adding both continued to gain from a positive interest rate environment.

Pretax profits for the first half from Asia jumped 23% to $9.4 billion, representing 88% of the group’s pretax profits. Flint re-emphasised Asia as one of the bank’s strategic targets in his June presentation.

The bank also announced that it had appointed Jonathan Symonds, formerly chairman of HSBC Bank Plc, as its deputy chairman.

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