HSBC H1 pretax profit falls 15%, increases equity goal

HSBC H1 pretax profit falls 15%, increases equity goal
FILE PHOTO: A woman wearing a protective face mask walks past a logo of HSBC bank at the financial and business district of La Defense near Paris, France May 11, 2020. REUTERS/Gonzalo Fuentes/

SINGAPORE : HSBC Holdings PLC reported a 15 per cent drop in first-half profit as expected credit losses more than offset the impact from rising net interest income at Europe’s biggest bank.

The London-headquartered lender reported on Monday a pretax profit of $9.2 billion for the six months ending June 30, down from $10.84 billion a year ago.

The bank said it would pay an interim dividend of 9 cents per share but said share buybacks remain unlikely this year.

In a sign of growing confidence in its ability to improve profitability, HSBC raised its near-term return on tangible equity goal to at least 12 per cent from 2023 onwards.

 

Source: Reuters