HSBC Holdings (00005) has reported its semi-annual results, revealing better-than-expected profits and increased revenue. The bank announced that its profit before tax will increase by $4.1 billion to $8.8 billion in the second quarter of 2023, while revenue for the same period will rise by $4.5 billion to $16.7 billion. In addition, the bank’s net interest margin increased by 3 basis points from the first quarter to 1.72%.
For the first half of 2023, HSBC reported a profit before tax of $21.7 billion, representing an increase of $12.9 billion compared to the previous year. When accounting for constant exchange rates, the profit before tax increased by $13.3 billion. The profit after tax on an accounting basis also rose by $9.1 billion to $18.1 billion.
Revenue for HSBC in the first half of the year increased by $12.3 billion to $36.9 billion. The bank attributed this growth to the increase in net interest income across all its global businesses, driven by rising interest rates. Additionally, the revenue increase included the impact of planned sales and acquisitions in France and the UK.
HSBC’s board has approved a second dividend of $0.10 per share and announced plans to initiate share repurchases of up to $2 billion. The share repurchase program is expected to begin soon and be completed within three months.
Looking ahead, HSBC has set a goal of 3% operating expense growth for 2023, excluding the impact of currency translation and significant items, while also adjusting for hyperinflationary economies. The bank has also increased its full-year guidance for net interest income in 2023 to more than $35 billion.
Following the release of the results, HSBC Holdings’ Hong Kong stocks rose by more than 1.69% to HK$66.35.
This article was written by Yingwei Caiqing Investing.com. To read more, please log in to cn.Investing.com or download the Yingwei Caiqing App.
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– Editor: Chen Han