Investing.com– British lender HSBC Holdings PLC (LON:) clocked a stronger-than-expected second-quarter profit on Wednesday on some resilience in its core markets, with the bank announcing a $3 billion buyback.
Profit before tax rose slightly to $8.9 billion in the three months to June 30, beating Bloomberg estimates for a profit of $7.78 billion.
This was against a revenue of $16.5 billion, down from $16.7 billion last year as it reflected earnings from divisions that HSBC divested over the past year.
The bank continued to see resilience in its wealth management and lending businesses, despite growing weakness in major markets Hong Kong and China. It benefited from higher interest rates across the globe.
This helped HSBC maintain a strong cash position, which enabled it to announce a $3 billion buyback commencing immediately.
“We expect to deliver a return on average tangible equity in the mid-teens for 2024 and 2025, excluding the impact of notable items… there are downside risks to net interest income when interest rates fall, but we’re confident that we have the levers to achieve these targets,” CEO Noel Quinn said in a statement.
Wednesday’s earnings will be the bank’s last under current CEO Noel Quinn, who is set to step down in September. HSBC CFO Georges Elhedery will take over from Quinn.
HSBC said on Wednesday that Jonathan Bingham, the bank’s global financial controller, will take over as interim CFO.
https://i-invdn-com.investing.com/news/LYNXMPEB4C0TN_L.jpg
Source link
Investing.com
