HSBC H1 profit up, plans up to $1 billion buybackChristian Fernsby ▼ | August 5, 2019
Asia-focused lender HSBC Holdings reported Monday that its first-half profit attributable to the ordinary shareholders of the parent company grew to $8.51 billion from last year's $7.17 billion.
HSBC Earnings per share were $0.42, up from $0.36 a year ago
Profit before tax went up 15.8 percent to $12.41 billion from prior year's $10.71 billion.
The latest results included $828 million dilution gain recognised on the completion of the merger of associate The Saudi British Bank with Alawwal bank in Saudi Arabia.
It also included a provision of $615 million related to the mis-selling of payment protection insurance, and $248 million of severance costs arising from cost efficiency measures across its global businesses and functions.
Adjusted profit before tax was $12.2 billion, compared to $11.72 billion last year.
Revenue grew 7.6 percent to $29.37 billion from prior year's $27.29 billion.
Adjusted revenue went up 8 percent to $28.50 billion.
Further, the company said it intends to initiate a share buy-back of up to $1 billion, which is expected to commence shortly.
Regarding 2020 financial targets, the company now said that based on the prevailing outlook for interest rates and revenue headwinds in certain segments, it does not expect to achieve 6 percent RoTE target in the US by 2020. ■