HSBC boasts ‘strong profit performance’ for first half of 2024

‘We are confident that we have the right strategy and model to grow revenue, even in a lower interest rate environment,’ said bank boss Noel Quinn.

Rachel Vickers-Price
Wednesday 31 July 2024 00:46 EDT
General view of a HSBC branch in London (Tim Ireland/PA)
General view of a HSBC branch in London (Tim Ireland/PA) (PA Archive)

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Banking giant HSBC has recorded a pre-tax profit of 21.6 billion US dollars (£16.8 billion) for the first half of 2024.

The company called the result “stable” after it reported a mammoth 21.7 billion US dollars in pre-tax profit in the first half of last year.

Operating expenses of 16.3 billion dollars (£12.6 billion) were 5% higher than in the first half of 2023, driven primarily by higher technology spend and investment, inflationary pressures, and an increase in the performance-related pay accrual.

In a statement, group chief executive Noel Quinn said: “After delivering record profits in 2023, we had another strong profit performance in the first half of 2024, which is further evidence that our strategy is working.

“Our investment in wealth is delivering higher, more diversified revenue and we continue to grow our core international and scale businesses, all of which helped us to provide $13.7 billion US (£10.6 billion) of distributions in respect of the first half.

“We are confident that we have the right strategy and model to grow revenue, even in a lower interest rate environment, and are therefore providing new guidance of a mid-teens return on average tangible equity in 2025.”

He added: “I have always been immensely proud of the heritage of this bank and the strategic role it plays in the world. My aim when I took this job was to deliver financial performance to match our standing. Working together, I believe we have done that and created a strong platform for growth.”

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