HSBC rises 3% in Hong Kong after profit beat, share buyback announcement


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Europe’s largest lender HSBC on Wednesday declared a share buyback program of up to $3 billion, as pretax profit for the first half of the year beat expectations on the back of a high-interest rate environment.

The bank posted pretax profit in the six months to June of $21.56 billion, down from $21.66 billion in the same period of last year. The first-half figure nevertheless came in well above the $20.5 billion average of broker estimates compiled by HSBC, according to Reuters.

Hong Kong-listed shares of HSBC were up 3.22% at 07:15 a.m. London time in the wake of the earnings beat. The bank is also listed on the London and New York Stock Exchanges.

“We are growing and investing in our international retail and wealth business to sit alongside this, which is helping to diversify revenue,” HSBC’s outgoing CEO Noel Quinn said Wednesday.

“Each of these strengths contributed to a good revenue performance in the first half of 2024, supported by higher interest rates.”

The bank’s revenue was up 1.1% year-on-year to $37.3 billion, in a performance HSBC attributed to the “impact of higher consumer activity in our Wealth products in Wealth and Personal Banking (‘WPB’), and in Equities and Securities Financing in Global Banking and Markets (‘GBM’).”

The lender’s wealth revenue picked up by 12% to $4.3 billion in the first six months to June, with noted growth in investment distribution, asset management and life insurance.

The bank outlined its priorities of diversifying its revenues and maintaining a firm foothold in what it described as its “critical” home markets of Hong Kong and the U.K. — it noted 345,000 new-to-bank customers opening accounts in the former region in the first half of the year, with international customers up 8% to 2.7 million in Britain over the same period.

The bank also announced a share buyback of up to $3 billion, which it said it expects to complete within three months.

This breaking news story is being updated.



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Muhammad Amin
Muhammad Aminhttp://buzznews.ahkutech.com
I am a teacher and a professional blogger with 3 years of experience. In addition to my teaching career, I am also a content writer, dedicated to creating engaging and informative content across various platforms.

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