HSBC H1 pretax profit falls 15%, increases profitability goal

HSBC Holdings PLC reported a 15% drop in first-half profit as credit loss provisions more than offset the impact from rising net interest income at Europe's biggest bank, but it raised a key performance target. The London-headquartered lender reported on Monday a pretax profit of $9.2 billion for the six months ending June 30, down from $10.84 billion a year ago and versus the $8.15 billion average estimate of analysts compiled by the bank.

HSBC Holdings PLC reported a 15% drop in first-half profit as credit loss provisions more than offset the impact from rising net interest income at Europe's biggest bank, but it raised a key performance target.

The London-headquartered lender reported on Monday a pretax profit of $9.2 billion for the six months ending June 30, down from $10.84 billion a year ago and versus the $8.15 billion average estimate of analysts compiled by the bank. The bank said it would pay an interim dividend of 9 cents per share but said share buybacks remain unlikely this year.

In a sign of growing confidence in its ability to improve profitability, HSBC raised its near-term return on tangible equity goal to at least 12% from 2023 onwards. The bank reported a $1.1 billion charge for expected credit losses, as heightened economic uncertainty and rising inflation put more of its borrowers into difficulty.