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- HSBC’s revenue gained 16%, year on year, exceeding estimates.
- The lender’s second-quarter profit before tax rose to $10.1 billion, down from $6.33 billion a year earlier.
Dado Ruvic | Reuters
HSBC reported second-quarter pre-tax profit of $10.1 billion on Tuesday, exceeding analysts’ estimates on the back of stronger growth in banking net interest income and other higher fees.
Revenue at Europe’s largest lender gained 16% year-on-year, helped by a one-off gain of $1.3 billion from notable items. Second-quarter profit before tax rose 60% year-on-year, also helped by a net favorable impact from notable items of $2.6 billion, the company said.
Here are HSBC’s second-quarter results compared with the consensus estimates compiled by the bank.
- Pre-tax profit: $10.1 billion vs. $9.51 billion
- Revenue: $19.1 billion vs. $18.57 billion
Notable items included costs associated with a $200 million restructuring, HSBC said in a statement.
HSBC’s net interest income rose 9% in the second quarter, year on year, to $9.29 billion. Operating expenses fell 2%, owing to lower restructuring costs.
HSBC maintained its targeted return on tangible equity — a measure of profitability — of 17%. Annualized RoTE in the reported quarter, excluding items, was 19.1%.
The HSBC board also approved a second interim dividend of 10 cents per share. The company plans to initiate a share buyback of up to $1 billion, which it expects to be completed by the announcement of third-quarter results, it said.
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