HSBC’s profits have soared as it continues to cut costs and cash in on high interest rates around the world, Michelle Toh reported for CNN.
Photo Insert: Europe’s biggest bank said Tuesday that pre-tax profit grew by $4.1 billion to $8.8 billion in the second quarter compared to the same time a year before.
Europe’s biggest bank said Tuesday that pre-tax profit grew by $4.1 billion to $8.8 billion in the second quarter compared to the same time a year before. That trumped analyst expectations of about $8 billion.
Revenue also rose by $4.5 billion to $16.7 billion.
The strong performance led the London-based lender to raise its outlook for the rest of the year, citing the current consensus for global interest rates.
HSBC now projects a return on tangible equity — a key measure of profitability — “in the mid-teens for 2023 and 2024, which excludes the impact of material acquisitions and disposals,” it said.
That compares with a target of “at least 12%” the bank had set out in May.
The lender also said its board had approved a second interim dividend for shareholders of 10 cents per share. The payout would come on top of an existing quarterly dividend of the same value.