HSBC Q2 Net Profit Climbs, Pre-tax Profit Flat; Says Revenue Outlook Positive

HSBC Holdings plc (HSBA.L,HSBC) reported Monday that its second-quarter profit after tax was $5.8 billion, which included a $1.8 billion deferred tax gain, while last year's profit was $3.9 billion.

Profit before tax was stable at $5.0 billion.

Reported revenue grew by $0.2 billion to $12.8 billion, despite the adverse impact of foreign currency translation differences.

Net interest income increased across all global businesses, mainly as a result of higher interest rates. Revenue growth also reflected a strong performance in Global Foreign Exchange in GBM and higher sales in life insurance manufacturing in WPB.

Further, the Board has approved an interim dividend for first half of $0.09 per ordinary share, to be paid in cash.

The company expect a dividend payout ratio of around 50 percent for 2023 and 2024.

Looking ahead, the revenue outlook remains positive. The revenue outlook has improved further since full-year 2021 results, despite the uncertain macroeconomic environment.

Based on the current market consensus for global central bank rates and continued mid-single-digit percentage lending growth expectations for 2022, the company expects net interest income of at least $31 billion for 2022 and at least $37 billion for 2023.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The US Centers for Disease Control and Prevention or CDC has ended recommendations for social distancing and quarantine with a view to minimize covid-19's impact on persons, communities, and health care systems. The agency also ended recommendation for test-to-stay in schools, CNN noted. Healthcare major Johnson & Johnson, which is in the middle of a talcum powder fiasco, said it is discontinuing talc-based JOHNSON'S Baby Powder globally in 2023. The company plans to transition to an all cornstarch-based baby powder portfolio. According to the company, the commercial decision to use cornstarch in all its baby powder products was made after conducting an assessment of its portfolio Walt Disney's streaming service Disney+ is rolling out its much-anticipated new ad-supported subscription plan for Disney+ in the U.S. as part of its bid to stem the loss and make its streaming business profitable after the services posted a hefty operating loss of more than $1 billion in the third quarter. It is also raising pricing for its bundled subscription plans with Hulu, ESPN+ and live TV.
Follow RTT