HSBC 1st Half Profit Rises on Growth in Retail Banking, Wealth Management
August 06 2018 - 1:33AM
Dow Jones News
By Kenan Machado
HONG KONG--HSBC Holdings PLC (0005.HK) said first-half net
profit rose 2.4% from a year earlier thanks to fees from
money-management services, particularly in Hong Kong.
The U.K. lender said Monday net profit for the six months ended
in June increased to $7.17 billion from $7.00 billion.
Profit before tax rose 4.6% to $10.71 billion.
Revenue rose 4.3% to $27.29 billion from $26.2 billion on higher
margins on deposits and balance growth as well as favorable
currency effects, the bank said.
However, taking into account currency moves and one-time
charges, adjusted profit before tax fell 1.8%.
Higher deposits by retail customers and "strong" sales of wealth
management products in Hong Kong helped revenue grow in the
lender's retail banking and wealth management segments, HSBC said.
The segments' collective contribution to first-half profit rose to
nearly 30% from 27.5%.
"We also grew our share of the U.K. mortgage market," said Group
Chief Executive John Flint.
Banks, particularly in Hong Kong and elsewhere in Asia, earn
lucrative fees for managing the money of wealthy clients who seek
to beat low returns on deposits. Having significant operations in
Hong Kong has helped HSBC as rich Chinese opt to keep money in the
city, outside the mainland.
For the second quarter, net profit rose 5.7% from a year
earlier, to $4.09 billion from $3.87 billion. Profit before tax
rose to $5.96 billion from $5.3 billion.
HSBC announced a dividend of $0.31 per ordinary share.
Hong Kong-listed shares of HSBC rose nearly 1% to 73 Hong Kong
dollars after the lunch break.
Write to Kenan Machado at kenan.machado@wsj.com
(END) Dow Jones Newswires
August 06, 2018 02:18 ET (06:18 GMT)
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