HSBC reported a profit after tax of $8.4bn in H1 2021, a rise of over $3bn year-on-year, and profit before tax increased from $6.5bn to $10.8bn.
This was attributed to a fall in revenue reflecting 2020 interest rate reductions and lower markets and securities services revenue relative to a strong H1 2020. This was offset by releases in the bank’s expected credit losses and other credit impairment charges.
HSBC stated that all regions were profitable in H1 2021, particularly HSBC UK Bank, which recorded profit before tax of over $2.1bn.
However, reported revenue was down 4% to $25.6bn year-on-year, reflecting 2020 interest rate reductions and lower MSS revenue in global banking and markets.
Furthermore, in H1 2021 lending increased by $21.5bn on a reported basis, reflecting growth in wealth and personal banking, as well as commercial banking.
The wealth and personal banking arm of HSBC made $3.864bn adjusted profit before tax in H1 2021, a 32.3% jump year-on-year, the highest rise of any side of the business.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Noel Quinn, group chief executive, said: “These are good results that reflect the return of growth in our main markets and marked progress in the execution of our strategy. We were profitable in every region in the first half of the year, supported by the release of expected credit loss provisions. Our lending pipeline began to translate into business growth in the second quarter and we further strengthened that pipeline during the half. This performance enables us to pay an interim dividend for the first six months of 2021.
“I’m pleased with the momentum generated around our growth and transformation plans, with good delivery against all four pillars of our strategy. In particular, we have taken firm steps to define the future of our US and continental Europe businesses, and further enhanced our global Wealth capabilities.
“We are focused on executing the growth and transformation plans we announced in February.”