HSBC first half 2018 results: Pre-tax profit up 4.6%

A sign outside of a HSBC
bank branch.
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Cardy/Stringer

• HSBC’s pre-tax profit rose 4.6% in the first half of
  2018 to $10.7 billion.
• “We are investing to win new customers, increase our
  market share, and lay the foundations for consistent growth in
  profits and returns,” John Flint, HSBC’s group chief executive,
  said.
• The bank is investing up to $17 billion over three
  years in areas like technology and China.
• 
  
  You can follow HSBC’s share price here.
  

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HONG KONG/LONDON (Reuters) – HSBC Holdings said on Monday its
pre-tax profit rose 4.6% for the first half of the year, as
Europe’s biggest bank showed early progress in its strategy of
returning to growth mode after years of restructuring.

HSBC reported a pre-tax profit of $10.7 billion in the six months
through June, up from $10.2 billion in the same period a year
earlier.

The bank’s pretax profit of $5.96 billion in the April-June
quarter was higher than the $5.79 billion average of analysts’
forecasts compiled by the bank.

HSBC’s
shares fell 1% in early trade despite the beat. Stockbroker
Hargreaves Lansdown said in an emailed statement that investors
are wary of rising costs outpacing income.

“The market has reacted cautiously to the numbers though, with
the shares down 1% in early trade, because within the detail the
group reported costs rising significantly faster than income,”
the broker said in an email. “Cost growth of 7% reflected
increased investments into growth and technology, far outpacing
the 2% of revenue growth.”

John Flint, HSBC’s group chief executive, said in a statement:
“We are taking firm steps to deliver the strategy we outlined in
June. We are investing to win new customers, increase our market
share, and lay the foundations for consistent growth in profits
and returns.”

Flint set out in June a three-year plan to invest $15 billion-$17
billion in areas such as technology and in China, as part of the
bank’s swing from a strategy of cost-cutting to one of growth.

HSBC’s retail banking and wealth management, and commercial
banking divisions performed most strongly, Flint said, adding
both continued to gain from a positive interest rate environment.

Pretax profits for the first half from Asia jumped 23% to $9.4
billion, representing 88% of the group’s pretax profits. Flint
re-emphasized one of the bank’s strategic targets in his June
presentation.

The bank also announced that it had appointed Jonathan Symonds,
formerly chairman of HSBC Bank, as its deputy chairman.

(Reporting by Alun John and Lawrence White; Editing by
Muralikumar Anantharaman)