HSBC registers interim profits of €17.5 million

HSBC has registered half-year profits before tax of €17.5 million, an increase of €15.6 million over the same period last year, the bank announced on Monday.

The boost in profits came on the back of a positive performance by the bank’s life insurance subsidiary and lower expected credit losses.

The interim results for 2021 show that revenue increased by 16% and was driven by the favourable market movements that benefitted the life insurance subsidiary. However, HSBC said that when excluding the insurance subsidiary, revenue decreased by 5% as a result of lower interest rates and subdued demand for corporate borrowing, credit cards and personal loans.

Net loans and advances to customers amounted to €3,256 million, a marginal decrease of €9 million when compared to the end of 2020. The bank saw marginal decreases in both commercial and retail banking driven by subdued demand for corporate facilities, credit cards and personal loans in view of the COVID-19 pandemic.

Despite an increase in new money approvals for commercial customers, utilisation remained low.

Customer accounts were €5,330 million as at 30 June, €57 million or 1% higher than at end 2020. These were driven by increases in both retail and commercial banking deposits.

HSBC said operating expenses increased marginally, principally due to increased regulatory fees as a result of higher customer deposits held at year end 2020.

Return on equity stood at 4.7% for the six months ended 30 June 2021, compared with 0.5% for the same period last year.

HSBC said no interim dividend will be distributed in line with prudence recommended by the European Central Bank as a result of uncertainty that still prevails in the marketplace.