HSBC profits reach $11m during first half of year

3 August 2010

HSBC’s profits for the first half of 2010 were more than double the amount the bank made during the same period last year.

According to the financial services provider, pre-tax profit reached $11.1 million, a figure which was $6 million more than the amount recorded across the first half of 2009.

Underlying pre-tax profits reached $9.6 billion, up by 30 per cent or $2.2 billion from last year.

The bank attributed its improved performance to a reduction in the amount of capital set aside for risk provision.

Charges for loan impairments and other risks dropped by $6.4 million to $7.5 million during the first half of 2010, the statistics revealed.

Michael Geoghegan, chief executive at HSBC, said: “This reflects the benefit of more stable economic conditions for many of our customers and follows our actions, begun before the crisis, to reduce exposure to unsecured lending outside our key relationships, to exit unprofitable business lines and to tighten underwriting standards for new business.”

He also emphasised the importance of emerging markets to the bank, citing China as one of its key strategic areas.

Further figures from HSBC revealed that the total declared dividends reached $2.8 billion - the equivalent of $0.16 per share.

By Jim Ottewill

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