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Profits come as global economy emerges from impact of Corona virus pandemic
HSBC doubled its profits in the first half of this year, benefiting from the economic recovery in Britain and Hong Kong.
The bank is the largest in Europe in terms of assets, with pre-tax profits of $ 10.8 billion this year, up from $ 4.3 billion in the same period last year.
The UK-based bank said all of its branches around the world made a profit.
These numbers come as the global economy emerges from the impact of the coronavirus pandemic.
“I am satisfied with the momentum of our growth and transformation plans, as well as the good results we have achieved,” said Bank CEO Noel Quinn.
The bank distributed the profits it made to its shareholders, after the economic recovery of its two largest markets, Great Britain and Hong Kong.
The bank plans to pay an interim dividend of seven cents per share after the Bank of England lifted restrictions on such payments to investors last month.
Laura Foll, UK director of income funds at Janus Henderson Investors, told the BBC the main factor behind HSBC’s profit surge was lower than expected loan losses during the pandemic.
She added that most banks put money aside last year, based on estimates, for amounts you could lose if loans default and customers weren’t able to. to repay them. For example, HSBC has allocated $ 700 million.
And she added: “All the banks are now withdrawing the number they estimated they were losing. That number has helped to increase HSBC’s profits more than any other improvement.”
Restructuring
HSBC said its restructuring program was still on track after announcing in February last year that it would cut 35,000 jobs as part of a plan to cut costs by $ 4.5 billion by 2022.
The bank announced in February its intention to “look to Asia” and presented plans to invest around $ 6 billion there.
He added that he would target wealth management and commercial banking services to achieve “double growth”, especially in Asian markets such as Singapore, China and Hong Kong. The bank actually generates most of its income in Asia.
In January, British lawmakers accused HSBC, which was founded in Hong Kong, of “aiding and abetting” the Chinese crackdown there.
The bank has been accused of behaving politically and being too close to Chinese authorities after discovering it had frozen accounts belonging to pro-democracy Hong Kong politician Ted Hoy and members of his family.
During its appearance before it, the British Foreign Affairs Committee said the bank was turning a blind eye to the situation in Hong Kong.
Quinn staunchly defended the bank, saying, “I can’t choose which laws we have to follow.”
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