Bangkok--30 Jul--HSBC
HSBC announced its reported profit before tax of US$12.7bn for the first half this year, US$1.3bn higher than in the first half of 2011. This included US$4.3bn of gains from the disposals of businesses, notably from the sale of the Card and Retail Services business and from the sale of 138 non-strategic branches in the US.
Underlying revenues up 4%, with particular increases in faster-growing regions of Hong Kong, Rest of Asia-Pacific and Latin America. Profit before tax in Hong Kong and Rest of Asia-Pacific rose US$1.3bn and accounted for almost two thirds of the total profit before tax worldwide. Global Banking and Markets profit before tax of US$5.0bn, up 5% compared to 1H11. Commercial Banking increased underlying revenues from faster growing regions by 12%
Stuart Gulliver, Group Chief Executive said “During the first six months of 2012, HSBC has recorded underlying revenue growth and continued to make substantial progress in certain key areas: Strong revenue growth in Hong Kong, Rest of Asia-Pacific and Latin America, the same regions currently driving world economic growth; Global Banking and Markets has had a strong six months, during a period of uncertainty in the financial markets and macroeconomic environment; and we have continued to make headway in delivering our strategy, helping us to control our costs and to achieve additional revenues from the closer integration of our four different global businesses.”
Our ratio of customer advances to customer accounts remained strong at 76.3%. Return on average ordinary shareholders’ equity was 10.5%, down from 12.3% as a result of a higher tax charge. The core tier 1 ratio increased during the period from 10.1% at the end of 2011 to 11.3% at 30 June 2012, driven by profit generation and a reduction in risk-weighted assets (‘RWAs’) following the business disposals.
The Group’s total assets at 30 June 2012 were US$2,652bn, an increase of US$96.7bn, or 4%, since 31 December 2011.