HSBC bank has reported a rise in profits for the first half of the year despite a drop in revenue. We answer five questions on HSBC’s figures for the first half of the year.
By how much has HSBC’s pre-tax profit risen by?
The bank’s pre-tax profit is up by 10 per cent to $14.1bn (£9.2bn). This is despite a 7 per cent drop in revenues to just under $35bn.
How has HSBC achieved these figures?
I has it has achieved this by streamlining its business and cutting operational costs by 13 per cent, as we as selling off non-core businesses and lower bad debts.
The bank said it had closed or sold 11 non-core businesses since the start of the year.
It also cut 46,000 jobs in May and plans to reduce its number of employees to between 240,000 and 250,000 over the next three years.
What has the company said about its latest figures?
“We have successfully progressed the repositioning of the business,” chief executive Stuart Gulliver is quoted by the BBC as saying.
“These results confirm the value which is being delivered from the continuing reshaping of the group and enforcing appropriate cost discipline,” he added.
Are the latest figures in line with expert’s expectations?
They are slightly below analysts expectations. HSBC’s shares, which have risen by over 40% in the past year, fell 3 per cent when the results were announced.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, speaking to the BBC said the key results were “strong or improving”.
“The statement is safe and dependable, as is the current aspiration of banking investors.”
What else has the bank said about its future plans?
The bank is planning on streamlining its operations further by focusing on high growth markets in Asia.
HSBC makes an estimated 90 per cent of its profits outside the UK.