HSBC adds further $2 billion buyback, interim profits beat forecastStaff Writer | July 31, 2017
HSBC unveiled a share buyback of up to $2 billion this year alongside a better-than-expected increase in first-half profits.
HSBC Tier 1 ratio is standing at 14.7%
Reported profit before tax rose 5% to $10.2bn, with adjusted profit before tax up 12% to $12.0bn. The consensus forecast was for profits nearer $9.5bn.
Making use of its strong capital position, with a common equity tier 1 ratio standing at 14.7% at 30 June, the board expects to complete a $2bn share buyback by the end of the year, follows an earlier $1bn buyback announced in February and the payment of two dividends totalling $0.20.
Since setting on a path in 2015 to cut costs and refocus the business more towards Asia, the first half saw annualised run-rate savings reach $4.7bn and regulatory approval received for the establishment of what will later this year be the first joint-venture securities company in mainland China majority-owned by a foreign bank, HSBC Qianhai Securities. ■