HSBC reports 6 per cent bump in second-quarter profits as it launches new strategy to boost profitability
Lender says strong start in first half of the year reflects higher deposits and balances in its retail banking and wealth management business and growth in its commercial banking business, particularly in Hong Kong
HSBC said on Monday that its earnings in the second quarter rose 6 per cent as Chief Executive John Flint begins to implement his strategy to reinvigorate the lender.
Europe’s largest bank reported a profit of US$4.09 billion in the second quarter, compared with a profit of US$3.87 billion in the same period last year.
On a pre-tax, adjusted basis, the lender said its profit was US$6.1 billion in the second quarter. That was ahead of an average estimate of analysts surveyed by HSBC.
HSBC’s shares closed up slightly at HK$72.65 in trading in Hong Kong on Monday, but were down in trading in London following the announcement.
“We will seek to achieve these aims by increasing returns from the group’s areas of strength, particularly in Asia and across our network; turning around low-return businesses of high strategic importance, particularly in the United States; investing in building a bank for the future with the customer at its centre; and making it easier for our colleagues to do their jobs,” he said.
Flint took over the leadership of HSBC in February, following a tumultuous period that saw the bank dramatically reshape itself as it faced greater regulatory scrutiny, a difficult economic environment and scandal following the global financial crisis.