Today, HSBC Holdings reported a 26% decline in first-half pretax profit, significantly missing analyst estimates.
According to the company, in Q1, “Profit before tax decreased by $5.7bn to $15.8bn compared with 1H24, primarily due to the recognition of dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited.”
“In addition, there was an adverse impact from the non-recurrence of $3.6bn in net gains in 1H24 relating to the disposals of our banking business in Canada and our business in Argentina. Profit after tax of $12.4bn was $5.2bn or 30% lower compared with 1H24,” HSBC wrote.
In Q2, the firm’s profit before tax dropped by $2.6 billion, or 29%, to $6.3 billion compared with 2Q24. Company revenue declined by $0.1 billion, compared with 2Q24.
Georges Elhedery, HSBC’s CEO, told investors: “We’re making positive progress in becoming a simple, more agile, focused organisation built on our core strengths. In the first half, we continued to execute our strategy with discipline and each of our four businesses sustained momentum in their earnings with each growing revenue. This gives us confidence in our ability to deliver our targets. We continue to navigate this period of economic uncertainty and market volatility from a position of strength, putting the changing needs of our customers at the heart of everything we do.”
Moving into the second half of the year, HSCB stated: “We operate in a global environment characterised by constant change and uncertainty, creating volatility in both economic forecasts and financial markets. The Group is well positioned to manage the impacts of these challenges and is focused on delivering the best outcomes for our customers.”
Despite a disappointing first half, HSCB remains confident it is on track to meet its cost target in the second half.
By CEO NA Editorial Staff
