For period ended 30 June 2022, reported revenue declined marginally to $25.23bn from $25.44bn in the year ago half.
However, HSBC’s adjusted revenue rose by nearly 4% to $25.7bn in the first half of this year from $24.7bn a year ago, driven by higher net interest income.
Net interest income totalled $14.45bn, an increase of more than 10% from $13.09bn in the year period.
HSBC group CEO Noel Quinn said: “Our first-half performance reflects the continued impact of our strategy, with gathering revenue momentum and tight cost control. The progress that we’ve made growing and transforming HSBC means we are in a strong position as we enter the current rates cycle.
“We are confident of achieving a return on tangible equity of at least 12% from 2023 onwards, which would represent our best returns in a decade.
The annual return on average tangible equity (RoTE) of 9.9% grew by 0.5 percentage points from H1 2021.
The board of HSBC has given consent for an interim dividend of $0.09 per ordinary share, which will be paid in cash, for the first half of 2022.
Quinn noted: “As a result, we are providing more specific dividend payout ratio guidance of around 50% for 2023 and 2024.
“We understand and appreciate the importance of dividends to all of our shareholders. We will aim to restore the dividend to pre-Covid-19 levels as soon as possible. We also intend to revert to quarterly dividends in 2023.” The Wealth and Personal Banking division of the group reported adjusted profit before tax of $2.94bn for the first half of 2022 as against $3.75bn in the year ago period.
HSBC Private Banking in H1 2022
Annabel Spring, CEO, HSBC Global Private Banking, said: “The past six months have been volatile for stock markets around the world in an already challenging economic backdrop marked by the effects of the pandemic, inflation, geo-political tensions and risks of recession. This complexity impacts our clients, their current investments and long-term wealth goals, so we have been focused on supporting them and providing the advice and services they need during these challenging times both with respect to managing the risks and taking advantage of the opportunities.
“Our resilient results demonstrate the trust and partnership of our clients in the first half of this year, during which our Wealth and Personal Banking business, which includes Global Private Banking, attracted US$39 billion in net new invested assets.
“Adjusted revenues for Global Private Banking reached US$945m, up 4% over 1H21 due to the positive impact of rising interest rates on net interest income and from higher annuity fee income. This increase was partly offset by a decline in brokerage and trading revenue, reflecting reduced client activity compared with a strong 1H21.
“We’re also proud of our teams working together to deliver new wealth solutions, digital capabilities and the highest levels of service – in line with our vision of being the leading private bank for Asian, international and HSBC-connected clients.”