HSBC profit jumps 121% to US$11.1 billion

This record profit excludes tax and is in comparison with the US$6 billion pre-tax profit for the first half of 2009.

Net interest income of US$19.8 billion was US$781 million, or 3.8 percent, lower than the first half of 2009 while net operating income before loan impairment charges and other credit risk provisions of US$35.6 billion was US$810 million, or 2.3 percent, higher than the first half of 2009, according to an HSBC Interim Results Announcement.

Loan impairment charges and other credit risk provisions were US$7.5 billion in the first half of 2010, US$6.4 billion lower than the first half of 2009.

Total operating expenses of US$18.1 billion increased by US$1.5 billion, or 8.7 percent, compared with the first half of 2009. On an underlying basis, operating expenses increased by 5 percent while the bank’s cost efficiency ratio registered at 50.9 percent compared with 47.9 percent in the same period last year.

Second interim dividend for 2010 was declared as US$0.08 per ordinary share, with approximate distribution of US$1.4 billion.