HSBC Reports Flat First-Half Profit, Beats Estimates

HSBC Holdings reported a slight decline of 0.4% in first-half profit on Wednesday but still beat analyst estimates, as its businesses benefited from higher interest rates worldwide while robust growth in its wealth business boosted revenue, Selena Li and Lawrence White reported for Reuters.

The result surpassed the $20.5 billion average of broker estimates compiled by HSBC. I Photo: Barry Caruth Flickr

Europe's largest bank posted a pretax profit of $21.6 billion for the first six months of this year, compared to $21.7 billion a year earlier. The result surpassed the $20.5 billion average of broker estimates compiled by HSBC.

"We are confident that we have the right strategy and model to grow revenue, even in a lower interest rate environment," Chief Executive Noel Quinn said.

The bank provided new guidance of a mid-teens return on average tangible equity—a performance target—for 2025. Previously, it had only aimed for a mid-teens return for 2024.