(AOF) – HSBC gained 2.14% to 660.13 pence in London after presenting robust results for the first half of 2023 this morning. Over this period, the international and British bank posted a pre-tax profit up 12, $9 billion to reach $21.7 billion. Additionally, its revenue jumped $12.3 billion to $36.9 billion, up 56% year-on-year. This increase is due to higher net interest income across all of its global businesses, and higher interest rates.
It also includes the impacts related to the planned sale in France of its retail bank and the acquisition of Silicon Valley Bank UK Limited (“SVB UK”).
Its net interest margin (“NIM”) of 1.70% also increased by 46 basis points over this half-year.
Specifically, HSBC’s revenue increased by $4.5 billion to $16.7 billion. This increase is driven by its good performance in the insurance sector and in the capital markets sector, which offset the declines recorded in the foreign exchange and equity sectors.
Following the release of these strong results, HSBC’s Board of Directors approved a second interim dividend of 0.10 cents per share.
Moreover, these results were well received by the Hong Kong Stock Exchange, where the title climbed up to 1.6% to 66.3 Hong Kong dollars.
In addition, HSBC plans to launch a new share buyback for up to $2 billion, which is expected to begin soon.
On the outlook side, based on the current trend in global key rates, HSBC is now targeting a return on equity of around 10% for 2023 and 2024, without taking into account the impact of major acquisitions and disposals.
The banking group also raised its forecast for net interest income for the year 2023 to more than 35 billion dollars. It is also targeting growth in operating expenses of about 3% for this year.
Delighted with the good performance in the first half of the year, HSBC CEO Noel Quinn believes that his group “still has a lot of work to do, and is now moving on to the next phase of its strategy”. He wants his company to “diversify revenue and maintain tight cost control.”
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