HSBC’s retail banking and wealth management unit has reported an adjusted pre-tax profit of $3.63bn for the first half of 2018, an increase of 7% compared to $3.39bn in the previous year, according to HSBC results.
Net operating income at the unit for the half year ended 30 June 2018 was $10.52bn, up 8% from $9.72bn a year ago. The division’s total operating expenses rose 9% on a year-on-year basis.
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Commenting on the performance, HSBC group CEO John Flint said: “Adjusted revenue growth in Retail Banking and Wealth Management was underpinned by higher retail deposit balances and strong Wealth Management product sales in Hong Kong. We also grew our share of the UK mortgage market.”
Adjusted pre-tax profit at the bank’s global private banking arm was $190m, a 32% surge from $144m last year.
Overall, the British banking group reported pre-tax profit of $10.71bn for the first half of 2018, up 5% from $10.24bn in the first half of 2017.
HSBC results show adjusted pre-tax profit was $12.14bn, down 2% from $12.36bn in the previous year.
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By GlobalDataCompared to last year, the group’s reported revenue increased 4% to $27.28bn while adjusted revenue rose 2% to $27.53bn. Reported operating expenses increased 7% year-on-year to $17.55bn.
The banking group’s common equity tier 1 ratio at the end of June 2018 was 14.2%.
“We are taking firm steps to deliver the strategy we outlined in June. Today’s results, which are in line with our expectations, show strong revenue growth in our global businesses. This is creating room to invest while maintaining our commitment to full-year positive adjusted jaws,” Flint noted.
Aside from HSBC results, Meanwhile, the bank has appointed Jonathan Symonds as its new deputy group chairman. Symonds previously chaired HSBC Bank.
He will retain his roles of the senior independent director, chairman of the group audit committee and a member of the group risk and the nomination and corporate governance committees.
