HSBC, a prominent London-based banking giant with a focus on Asia, has reported a significant increase in profits for the first half of the year. The bank’s profit soared to $16.97 billion, more than doubling its previous year’s figure of $7.80 billion. This follows HSBC’s remarkable first quarter performance, in which it achieved a profit of $10.33 billion.
The substantial growth in profit can be attributed to higher interest rates, which boosted HSBC’s net interest income to $18.26 billion. As a result, the bank’s revenue climbed by 50%, reaching a staggering $36.9 billion.
During the second quarter, HSBC experienced a further increase in revenue, which rose by $4.5 billion to $16.7 billion. This growth was driven by the bank’s global businesses and reflected the positive impact of higher interest rates.
To reward its shareholders, HSBC announced that it will pay a dividend of $0.10 per share for this quarter, in addition to the $0.10 dividend paid in the previous quarter. This marks a significant milestone for the bank, as it is its first dividend payout since 2019. Furthermore, HSBC revealed plans to buy back up to $2.0 billion of shares, on top of the $2.0 billion share buyback announced earlier this year.
Chief Executive Noel Quinn expressed optimism about the future, stating that there is “substantial further distribution capacity” expected in the coming periods. In line with current market consensus for global central bank rates, HSBC has raised its 2023 guidance for net interest income to surpass $35 billion.
This impressive performance underscores HSBC’s resilience and adaptability in an ever-changing financial landscape. As the bank continues to capitalize on market opportunities, investors can look forward to sustained growth and increased shareholder value.