HSBC Holdings plc update
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HSBC said it will pay an interim dividend after its pre-tax profit has more than quadrupled to US$5.1 billion in the second quarter.
Europe’s largest bank Benefit The outlook for the global economy improves as it continues to withdraw reserves set aside to cover credit losses during the 2020 COVID-19 pandemic.
The second-quarter data released on Monday easily exceeded analyst expectations, who had previously expected revenue of approximately US$3.7 billion, despite a slight decline in revenue.The bank has also increased its investment, especially through $6 billion Plans to develop its Asian wealth business. Revenue for the quarter was US$12.6 billion, down from US$13.1 billion in the same period last year.
Noel Quinn, Chief Executive Officer of HSBC, said: “These good results reflect the return to growth in our major markets and the significant progress in the execution of our strategy.” With support, we achieved profitability in every region in the first half of the year.”
In the second quarter, HSBC cancelled another US$300 million in provision for bad debts during the pandemic. It has cancelled US$700 million of reserves this year, reducing its total reserves to approximately US$2.4 billion.
This helped the net profit in the first half of 2021 soar to 10.8 billion U.S. dollars, an increase of approximately 150% compared to the same period last year.
Performance Marks a turnaround Starting from the bleak 2020, banks have struggled to cope with the impact of ultra-low interest rates, slowing trade, and unprecedented global lockdowns.Last year, HSBC’s annual Profit plummeting 45%.
HSBC’s profit attributable to common shareholders in the second quarter was US$3.4 billion, up from US$192 million in the same period last year.
The London-based bank announced an interim dividend of 7 cents per share on Monday.Bank of England Remove restriction The July payment of bank dividends indicates that the industry has sufficient flexibility to withstand any further impact from Covid-19.
HSBC stated that it continued to accelerate its strategic focus in the second quarter and completely withdrew from its Troubled U.S. Banking and Sell its French retail bank. Exiting the slow-growing US and European sectors is part of the bank’s efforts to save approximately US$4.5 billion in costs and lay off 35,000 employees.
Loan repayment Appoint a new co-head The company withdrew from its Asia Pacific business in June after Peter Wong, who had served as CEO of the region for more than a decade, resigned as a non-executive director.The bank is also processing Relocation four As it continued to accelerate its strategic shift to Asia, its executives moved from the UK to Hong Kong.