HSBC has announced robust pre-tax earnings amounting to $21.7bn (£16.9bn) for the initial half of 2023, a nearly 150% surge due to rising interest rates.
The conglomerate also introduced a fresh share repurchase initiative as its profit before tax experienced a $12.9bn (£10.1bn) increase compared to the same time frame in the previous year.
In addition to the $2bn programme declared just a quarter ago, the bank will buy back an extra $2bn (£1.6bn) worth of shares. This comes as the revenue climbed by $12.3bn (£9.6bn) to hit $36.9bn (£28.8bn).
Noel Quinn, HSBC’s Group CEO, commented:
Our performance in the first half of 2023 was robust and we are positive about accomplishing our updated mid-teen return on tangible equity goals in 2023 and 2024.
There was impressive, widespread profit generation globally, augmented revenue in our global enterprises driven by substantial net interest income, alongside continued rigorous cost management.
It’s gratifying to be able to offer our shareholders a second interim dividend of 0.10 US dollars per share and a second share buyback in 2023 amounting to up to 2 billion US dollars, with considerable additional distribution capacity anticipated in the future.
While there remains a considerable amount of work to do, particularly considering the numerous obstacles present in the global economy, I maintain confidence about our future prospects as we dive deeper into the next phase of our strategy, emphasizing opportunities to stimulate value creation, diversify our revenue sources, and maintain rigorous cost management.
