HSBC (NYSE: HBC) sees first-half profits double

in Business-news

HSBC Holdings PLC, a financial services corporation, reported its big profit in the first six months because of decline in loan impairments and other charges. It first-half net profit rose to $6.76 billion, compared to $3.35 billion from a year ago. Pretax profit increased from $5.02 billion to $11.1 billion.

 

Its shares (HBC 51.08, -0.26, -0.51%) posted their gains up to 4.5% on the London Stock Exchange. However, since the beginning of the year to date, its shares are still down about 5% in total. Its dividends were declared to reach a total of $2.8 billion, or 16 cents a share for the period.

 

There has been a decline of $7.52 billion of loan impairments and other charges for the first half of this year, given that economic conditions in many countries have been improved and HSB tried to reduce its exposure to unsecured lending and did not invest in unprofitable businesses.

 

Its North American operations have become the core focus of this restructuring. The business posted a pretax profit of $492 million. Its global banking and market arm saw an 11% decline in pretax profit to $5.63 billion as trading income was lower along with higher expenses. The bank’s good results also came mostly from its businesses in European, Asian, and emerging countries.

 

HSBC Holding PLC (LSE: HSBA), (SEHK: 500), (NYSE: HBC), (Euronext: HSB) is listed on the London, New York, Hong Kong, Paris, and Bermuda Stock Exchanges. As of 2010, HSBC has become the world’s largest banking and financial services group according to a composite measure by Forbes magazine

 

Banking analysts welcomed the good results, with the headline profit figure ahead of expectations. According to Chief Executive Michael Geoghegan, there would be a good sign for credit growth. However, a warning was that the recovery in US business would depend on the recovery in the US housing market.

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HSBC (NYSE: HBC) sees first-half profits double

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This article was published on 2010/08/02