HSBC profits break $10bn as figures rise by more than 150%

UK bank HSBC has announced that its profits more than doubled in the first half of the year.

HSBC announced today (August 2) that its profit before tax for the first six months of this year increased by $6.5bn compared to the same period in 2020, reaching $10.8bn - 151 per cent higher than 2020’s $4.3bn.

The bank also reported that its profit after tax rose from $3.1bn to $8.4bn, an increase of 170 per cent on last year.

It noted that all of its regions were profitable during the period, adding that it saw “continued strength” across Asia, and UK profits of more than $2.1bn.

However, it said that its reported revenue is down by four per cent, which it attributes to interest rate reductions throughout 2020.

Noel Quinn, group chief executive of HSBC UK, 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.”

The plans will see the bank expand further into Asia, aiming to invest around $6bn in the area.