HSBC’s profit more than doubled

HSBC’s profit more than doubled

One of the world’s largest banking and financial services organizations impressed markets with the first half of the year earnings

HSBC reported a pre-tax profit of $10.84 billion, surpassing the $9.45 million analysts’ consensus, with figures more than doubling compared to the year-ago numbers.

On the other hand, compared to last year’s figures, the bank’s revenue fell 4.5% to $25.55 billion. However, it was broadly in line with the $25.52 billion forecasted.

According to Noel Quinn, HSBC’s Group Chief Executive, the positive economic outlook allowed the bank to release provisions set aside for potential loan losses, boosting the bank’s profitability. “This performance enables us to pay an interim dividend for the first six months of 2021,” he added. The dividend is $0.07 per ordinary share.

For the future, HSBC targets a dividend payout ratio of 40% - 55% of reported earnings per ordinary share for 2021.

After the news hit the wires, HSBC share price jumped more than 3% during the Hong Kong trading hours.

Source: cnbc.com

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