HSBC has reported a surge of 102.5% in its profit after tax to $18.07bn for the first six months of this year (H1 2023), compared to $8.93bn for the same period in the previous year.
The profit after tax for the reported period comprised a $2.1bn recovery of an impairment connected to the planned sale of the group’s retail banking operations in France, along with a provisional gain of $1.5bn from the acquisition of Silicon Valley Bank UK (SVB UK).
HSBC’s diluted earnings per share (EPS) for H1 2023 were $0.86, an increase of 115%, compared to $0.4 in H1 2022, as per the interim results released by the British financial services group for the first half of 2023 ended 30 June.
The banking major posted a profit after tax of $7.04bn for the second quarter ended 30 June (Q2 2023), an increase of 28%, compared to $5.5bn for the same period of the prior year.
The revenue for H1 2023 increased by 51% to $36.9bn from $24.5bn in H1 2022. The surge was primarily fuelled by augmented net interest income across all the global businesses, resulting from interest rate hikes, said the British banking group.
Additionally, the earnings encompassed the effects linked to the planned sale in France and the acquisition in the UK.
The net interest income for the reported first half stood at $18.26bn, an increase of 36.5%, compared to $13.38bn in H1 2022.
For Q2 2023, the revenue was $16.7bn, an increase of 38%, compared to $12.07bn in Q2 2022. The net interest income for the reported three months was $9.3bn, an increase of 34.7%, compared to $6.9bn for the quarter ended 30 June 2022.
HSBC group chief executive Noel Quinn said: “We have delivered a strong first half performance and are confident of achieving our revised mid-teens return on tangible equity target in 2023 and 2024.
“There was good broad-based profit generation around the world, higher revenue in our global businesses driven by strong net interest income, and continued tight cost control.
“I am also pleased that we can reward our shareholders with a second interim dividend of $0.10 per share and a second share buy-back in 2023 of up to $2bn, with substantial further distribution capacity still expected ahead.”
