HSBC posts second-quarter surprise as profit jumps unexpectedly by 61 per cent on deferred tax gain, helping bank to beat estimates
- Net profit jumped by 61 per cent to US$5.49 billion in the three months ended June 30, beating the US$2.7 billion expected by analysts
- Revenue advanced by 1.6 per cent to US$12.8 billion, while net interest income rose 13.6 per cent to US$7.5 billion during the period, the London-based bank said
The bank reported an unexpected 61 per cent jump in net profit to US$5.49 billion in the three months ended June 30, beating the US$2.7 billion expected by analysts. Revenue advanced by 1.6 per cent to US$12.8 billion, while net interest income rose 13.6 per cent to US$7.5 billion during the period, the London-based bank said.
The quarterly results included a US$1.8 billion gain on a deferred tax asset from historical losses, which was accelerated as a result of improved profit forecast in its UK business, HSBC said.
“We have no greater strength than our ability to bridge capital and trade flows between the major economic blocks of the world,” HSBC’s chief executive Noel Quinn said during an analysts’ call. “It has been our judgment that alternative structural options will not deliver increased value for shareholders, [but] would rather have a material, negative impact on value. Our current strategy is the fastest and safest way to get to higher returns and dividends we all want to see.”
