31 July, 2017
HSBC's pre-tax profits rose by 5 per cent in the first half of the year, the bank said on Monday, beating analysts' expectations.
"In the past 12 months we have paid more in dividends than any other European or American bank and returned $3.5 billion to shareholders through share buy-backs".
Profits in Asia, its most lucrative market, rose 7% to $7.6 billion over the first half of the year, the bank said, while adjusted profits from its global banking and markets division rose 28.4% to $3.4 billion, almost matching the bottom line from its giant commercial banking division.
Reported pre-tax profits for the first half of the year hit $10.2bn, an increase of 5 per cent on the same period last year.
"We have had an excellent first half of 2017, reflecting the changes we have made since our Investor Update in 2015 and the strength of our competitive position", said CEO Stuart Gulliver.
The U.K. lender plans to spend another $2.0 billion to buy back more shares in the second half, as part of a program to run down its stockpile of cash.
"We expect a buyback of $2.5 billion to be announced for 2H17 - a lower figure would be seen as a disappointment we think", Deutsche Bank analysts wrote in a note.
At the release of its interim results last year, HSBC launched the first share buy back in its history, and a further buy back was announced with its full year results in February.
The Hong Kong-listed shares of HSBC are up 24% this year as investors bet that the bank will return more capital to shareholders through buybacks and bigger dividends.
The bank's long-time chairman Douglas Flint will be succeeded by former AIA chief executive Mark Tucker, who will lead a search for a new chief executive.
