Aaron P | Ball Griffin | GC Images | Getty Images
Europe’s largest lender HSBC It announced a share buyback program of up to $3 billion on Wednesday as first-half pre-tax profit beat expectations on the back of a high interest rate environment.
The bank reported pretax profit of $21.56 billion for the six months to June, down from $21.66 billion a year earlier. Still, the first-half figure was well above the average broker estimate of $20.5 billion compiled by HSBC, Reuters reported.
Affected by the improved performance, HSBC’s Hong Kong-listed shares rose 3.22% at 07:15 am London time. The bank is also listed on the London and New York stock exchanges.
“We are growing and investing in our international retail and wealth businesses to respond to this challenge, which will help diversify revenue,” HSBC’s outgoing chief executive Noel Quinn said on Wednesday.
“These advantages have all contributed to good revenue performance in the first half of 2024, supported by higher interest rates.”
The bank’s revenue rose 1.1% year-on-year to $37.3 billion, a performance HSBC attributed to “the impact of increased consumer activity across our Wealth and Personal Banking (‘WPB’) and wealth products such as stocks and securities finance Global Banks and Markets (‘GBM’).
The bank’s wealth income grew 12% to $4.3 billion in the six months to June, with significant growth in its investment distribution, asset management and life insurance businesses.
The bank outlined its priorities to diversify revenue and maintain a strong foothold in what it called its “key” home markets of Hong Kong and the UK – where it noted 345,000 new customers in the first quarter. Opened an account.
The bank also announced a share buyback of up to $3 billion, which it said it expected to complete within three months.
This breaking news story is being updated.
About The Author
