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HSBC’s second-quarter profit beats estimates as it benefited from higher interest rates, cost control
- Pre-tax profit was US$8.77 billion, ahead of US$7.96 billion expected by analysts
- HSBC to pay quarterly dividend of 10 US cents a share; analysts expect full-year dividend payments of 61 US cents a share
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Chad Brayin London
HSBC, the biggest of Hong Kong’s currency-issuing banks, reported a better-than-expected profit for the second quarter, driven by gains in its commercial and retail banking businesses as it benefited from the rising interest rate environment.
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The London-based bank, which generates much of its profit in Asia, reported a 12 per cent increase in net profit to US$6.64 billion in the three months ended June 30, from a profit of US$5.49 billion a year earlier.
The lender, one of Europe’s largest by assets, reported a pre-tax profit of US$8.77 billion, ahead of the US$7.96 billion expected by analysts.
“We have delivered a strong first half performance and are confident of achieving our revised mid-teens return on tangible equity target in 2023 and 2024,” HSBC CEO Noel Quinn said in a stock exchange filing.
“There is still much work to do, especially given the many challenges in the global economy, but I am confident about the future as we move further into the next phase of our strategy and focus on opportunities to drive value creation, diversify our revenue and retain tight cost control,” he said.
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HSBC gave its latest financial report card just days after crosstown-rival Standard Chartered reported a 20 per cent increase in its second-quarter net profit, driven by sharp gains in its transaction banking and Asian operations. Bank of China (Hong Kong), the third of the city’s currency-issuing lenders, is expected to report its results later this month.
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