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Return on average ordinary shareholders’ equity up 12.0%
HSBC made a reported profit before tax of US$14.1bn, an increase of US$1.3bn, or 10%, compared with the first half of 2012, the company has reported.
Profit attributable to ordinary shareholders was US$10.0bn, an increase of US$1.8bn or 23% compared with the first half of 2012. Return on average ordinary shareholders’ equity was 12.0%, up from 10.5% in the first half of 2012.
Net interest income of US$17.8bn was US$1.6bn, or 8%, lower than the first half of 2012, whilst net operating income before loan impairment charges and other credit risk provisions of US$34.4bn was US$2.5bn, or 7%, lower than the first half of 2012.
Total operating expenses of US$18.4bn decreased by US$2.8bn, or 13%, compared with the first half of 2012. On an underlying basis, operating expenses decreased by 8%.
HSBC’s cost efficiency ratio was 53.5%, 4 percentage points lower than the first half of 2012.
Loan impairment charges and other credit risk provisions were US$3.1bn in the first half of 2013, US$1.7bn lower than the first half of 2012.
The Directors have declared a second interim dividend for 2013 of US$0.10 per ordinary share, a distribution of approximately US$1,864m. The core tier 1 ratio and common equity tier 1 ratio for the Group remained strong at 12.7% and 10.1%, respectively, at 30 June 2013.
The Group’s total assets at 30 June 2013 were US$2,645bn, a decrease of US$47bn, or 2%, since 31 December 2012.
In a statement the company said that they have “continued to make progress on delivering our strategy and grew revenues in key areas including in our Financing and Equity Capital Markets and Credit businesses, in residential mortgages in our home markets of Hong Kong and the UK, and from collaboration between our global businesses.
“We achieved additional sustainable cost savings of US$0.8bn, taking annualised savings to US$4.1bn since 2011, exceeding our target for the end of 2013”.
