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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.

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